8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 19, 2015

BUILDERS FIRSTSOURCE, INC.

(Exact Name of Registrant as Specified in its Charter)

0-51357	Delaware	52-2084569
(Commission File Number)	(State or Other Jurisdiction of Incorporation)	(IRS Employer Identification No.)

2001 Bryan Street, Suite 1600, Dallas, Texas 75201

(Address of Principal Executive Offices)

(214) 880-3500

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events

Builders FirstSource, Inc. (the "Company") is filing this Current Report on Form 8-K to recast certain financial information contained in its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015 (the "June 2015 10-Q") due to changes in its reportable segments.

As a result of the Company's reorganization following the acquisition of ProBuild Holdings LLC, the Company now has four reportable segments based on an aggregation of the geographic regions in which it operates.  The Company began to report under the new reporting segment structure with the filing of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2015.

The information included in this Current Report on Form 8-K is presented for informational purposes only in connection with the reporting changes described above and does not amend or restate any of the Company's previously issued financial statements, which are included in its Annual Report on Form 10-K for the year ended December 31, 2014, the June 2015 10-Q or in its Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2015 and September 30, 2015. In particular, there have been no changes to the Company's consolidated results of operations, balance sheets or statements of cash flows. This Current Report on Form 8-K does not modify or update the disclosures in the June 2015 10-Q in any way, other than to illustrate the change in reporting segments. As such, this Current Report on Form 8-K should be read in conjunction with the June 2015 10-Q and the Company’s filings made with the Securities and Exchange Commission subsequent to the filing of the June 2015 10-Q, including the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 and the Company's Current Reports on Form 8-K filed November 19, 2015.

The rules of the Securities and Exchange Commission require that when a registrant prepares, on or after the date a registrant reports an accounting change such as the change noted above, a new registration, proxy or information statement that includes or incorporates by reference financial statements, the registrant must recast the prior period financial statements included or incorporated by reference in the registration, proxy or information statement to reflect these types of changes. In the event that one of the above may occur, the Company is filing this Current Report on Form 8-K to recast our consolidated financial statements as of June 30, 2015 and 2014 to reflect the changes in segment reporting, as described above. The recast of Items contained in the Company's June 2015 10-Q is presented in Exhibits 99.1 and 99.2 to this Current Report on Form 8-K.

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Item 9.01 Financial Statements and Exhibits

(d) Exhibits

The following exhibits are filed as part of this report:

Exhibit No.	Description of Exhibit
99.1	Revised Condensed Consolidated Financial Statements of Builders FirstSource, Inc. for the six months ended June 30, 2015 and 2014
99.2	Revised Management's Discussion and Analysis for Builders FirstSource, Inc. for the six months ended June 30, 2015 and 2014

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BUILDERS FIRSTSOURCE, INC.
Dated: November 19, 2015	By:	/s/ Donald F. McAleenan
	Name:	Donald F. McAleenan
	Title:	Senior Vice President, General Counsel and Secretary

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EXHIBIT INDEX

Exhibit No.	Description of Exhibit
99.1	Revised Condensed Consolidated Financial Statements of Builders FirstSource, Inc. for the six months ended June 30, 2015 and 2014
99.2	Revised Management's Discussion and Analysis for Builders FirstSource, Inc. for the six months ended June 30, 2015 and 2014

EX-99

EXHIBIT 99.1

REVISED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF BUILDERS FIRSTSOURCE, INC.

Note: The information contained in this Item has been updated for the change to reportable segments discussed in the Notes to the Consolidated Financial Statements. This Item has not been updated for any other changes since the filing of the Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) for the Three and Six Months Ended June 30, 2015 and 2014	2
Condensed Consolidated Balance Sheets (Unaudited) as of June 30, 2015 and December 31, 2014	3
Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2015 and 2014	4
Notes to Condensed Consolidated Financial Statements (Unaudited)	5

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PART I  — FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(Unaudited) (In thousands, except per share amounts)
Sales	$	461,521		$	426,543		$	832,507		$	772,452
Cost of sales		350,907			332,744			638,160			603,738
Gross margin		110,614			93,799			194,347			168,714
Selling, general and administrative expenses		94,543			76,417			177,381			145,735
Facility closure costs		131			28			385			191
Income from operations		15,940			17,354			16,581			22,788
Interest expense, net		12,573			6,504			20,180			15,332
Income (loss) from continuing operations before income taxes		3,367			10,850			(3,599	)		7,456
Income tax expense (benefit)		(199	)		230			(3	)		148
Income (loss) from continuing operations		3,566			10,620			(3,596	)		7,308
Income (loss) from discontinued operations (net of income tax expense of $0 in 2015 and $0 in 2014)		10			(11	)		102			(83	)
Net Income (loss)	$	3,576		$	10,609		$	(3,494	)	$	7,225
Comprehensive Income (loss)	$	3,576		$	10,609		$	(3,494	)	$	7,225
Basic net income (loss) per share:
Income (loss) from continuing operations	$	0.04		$	0.11		$	(0.04	)	$	0.07
Income (loss) from discontinued operations		0.00			(0.00	)		0.00			(0.00	)
Net Income (loss)	$	0.04		$	0.11		$	(0.04	)	$	0.07
Diluted net income (loss) per share:
Income (loss) from continuing operations	$	0.03		$	0.09		$	(0.04	)	$	0.07
Income (loss) from discontinued operations		0.00			(0.00	)		0.00			(0.00	)
Net Income (loss)	$	0.03		$	0.09		$	(0.04	)	$	0.07
Weighted average common shares:
Basic		99,163			98,032			98,677			97,963
Diluted		102,978			100,759			98,677			100,766

The accompanying notes are an integral part of these condensed consolidated financial statements.

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BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2015			December 31, 2014
	(Unaudited) (In thousands, except per share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$	40,151		$	17,773
Accounts receivable, less allowance of $3,148 and $3,153 at June 30, 2015 and December 31, 2014, respectively		184,675			148,352
Inventories		146,227			138,156
Other current assets		26,752			27,259
Total current assets		397,805			331,540
Property, plant and equipment, net		86,830			75,679
Goodwill		141,090			139,774
Intangible assets, net		16,086			17,228
Other assets, net		20,561			18,844
Total assets	$	662,372		$	583,065
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	110,538		$	75,868
Accrued liabilities		80,460			66,225
Current maturities of long-term debt		55,078			30,074
Total current liabilities		246,076			172,167
Long-term debt, net of current maturities		353,790			353,830
Other long-term liabilities		14,363			16,868
Total liabilities		614,229			542,865
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $0.01 par value, 10,000 shares authorized; zero shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively		-			-
Common stock, $0.01 par value, 200,000 shares authorized; 99,326 and 98,226 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively		993			982
Additional paid-in capital		391,517			380,091
Accumulated deficit		(344,367	)		(340,873	)
Total stockholders' equity		48,143			40,200
Total liabilities and stockholders' equity	$	662,372		$	583,065

The accompanying notes are an integral part of these condensed consolidated financial statements.

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BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months ended June 30,
	2015			2014
	(Unaudited) (In thousands)
Cash flows from operating activities:
Net income (loss)	$	(3,494	)	$	7,225
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		6,782			4,022
Amortization of deferred loan costs		1,232			1,200
Fair value adjustment of stock warrants		4,563			19
Deferred income taxes		28			80
Bad debt expense		161			(336	)
Stock compensation expense		3,369			1,908
Net gain on sale of assets		(114	)		(15	)
Changes in assets and liabilities:
Receivables		(36,129	)		(21,823	)
Inventories		(6,976	)		(15,438	)
Other current assets		1,876			1,728
Other assets and liabilities		1,046			(114	)
Accounts payable		34,670			19,663
Accrued liabilities		10,543			2,573
Net cash provided by operating activities		17,557			692
Cash flows from investing activities:
Purchases of property, plant and equipment		(14,331	)		(12,121	)
Proceeds from sale of property, plant and equipment		180			16
Cash used for acquisitions, net		(5,797	)		(8,726	)
Net cash used in investing activities		(19,948	)		(20,831	)
Cash flows from financing activities:
Borrowings under revolving credit facility		25,000			-
Payments of long-term debt and other loans		(36	)		(33	)
Deferred loan costs		-			(34	)
Payments of transaction costs		(326	)		-
Exercise of stock options		1,117			1,355
Repurchase of common stock		(986	)		(1,306	)
Net cash provided by (used in) financing activities		24,769			(18	)
Net change in cash and cash equivalents		22,378			(20,157	)
Cash and cash equivalents at beginning of period		17,773			54,696
Cash and cash equivalents at end of period	$	40,151		$	34,539

The accompanying notes are an integral part of these condensed consolidated financial statements.

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BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1.  Basis of Presentation

Builders FirstSource, Inc., a Delaware corporation formed in 1998, is a leading supplier and manufacturer of structural and related building products for residential new construction in the United States. In this quarterly report, references to the “Company,” “we,” “our,” “ours” or “us” refer to Builders FirstSource, Inc. and its consolidated subsidiaries, unless otherwise stated or the context otherwise requires.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all recurring adjustments and normal accruals necessary for a fair statement of the Company’s financial position, results of operations and cash flows for the dates and periods presented. Results for interim periods are not necessarily indicative of the results to be expected during the remainder of the current year or for any future period. All significant intercompany accounts and transactions have been eliminated in consolidation.

The condensed consolidated balance sheet as of December 31, 2014 is derived from the audited consolidated financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. This condensed consolidated balance sheet as of December 31, 2014 and the unaudited condensed consolidated financial statements included herein should be read in conjunction with the more detailed audited consolidated financial statements for the year ended December 31, 2014 included in our most recent annual report on Form 10-K. Accounting policies used in the preparation of these unaudited condensed consolidated financial statements are consistent with the accounting policies described in the Notes to Consolidated Financial Statements included in our Form 10-K.

2. Net Income (Loss) per Common Share

Net income (loss) per common share (“EPS”) is calculated in accordance with the Earnings per Share topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“Codification”), which requires the presentation of basic and diluted EPS. Basic EPS is computed using the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential common shares.

Our restricted stock shares include rights to receive dividends that are not subject to the risk of forfeiture even if the underlying restricted stock shares on which the dividends were paid do not vest. In accordance with the Earnings per Share topic of the Codification, unvested share-based payment awards that contain non-forfeitable rights to dividends are deemed participating securities and should be considered in the calculation of basic EPS. Since the restricted stock shares do not include an obligation to share in losses, they will be included in our basic EPS calculation in periods of net income and excluded from our basic EPS calculation in periods of net loss. Accordingly, there were 13,000 restricted stock shares included in our calculation of basic EPS for the three months ended June 30, 2015, as we generated net income. There were 13,000 restricted stock shares excluded from our calculation of basic EPS for the six months ended June 30, 2015 because we generated a net loss. 68,000 restricted stock shares were included in the computation of basic EPS for the three and six months ended June 30, 2014 as we generated net income.

For the purpose of computing diluted EPS, weighted average shares outstanding have been adjusted for common shares underlying 6.2 million options and 1.5 million restricted stock units (“RSUs”) for the three months ended June 30, 2015. Incremental shares attributable to average warrants outstanding during the second quarter of 2015 were not included in the computation of diluted EPS for the three months ended June 30, 2015 as their effect was anti-dilutive. There were no outstanding warrants as of June 30, 2015 as all of the remaining stock warrants were exercised in April 2015. Options to purchase 6.2 million shares of common stock, 1.5 million RSUs, and the incremental shares attributable to average warrants outstanding during the first six months of 2015 were not included in the computation of diluted EPS for the six months ended June 30, 2015 because their effect was anti-dilutive.

Weighted average shares outstanding have been adjusted for common shares underlying 6.4 million options, 1.8 million RSUs, and 0.7 million warrants for the three and six months ended June 30, 2014. In addition, $1.2 million and $0.0 million of expense due to fair value adjustments related to the warrants were excluded from net income in the computation of diluted EPS for the three and six months ended June 30, 2014.

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The table below presents a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS (in thousands):

	Three Months EndedJune 30,				Six Months EndedJune 30,
	2015		2014		2015		2014
Weighted average shares for basic EPS		99,163		98,032		98,677		97,963
Dilutive effect of options, warrants, and RSUs		3,815		2,727		—		2,803
Weighted average shares for diluted EPS		102,978		100,759		98,677		100,766

3. Debt

Long-term debt consisted of the following (in thousands):

	June 30,2015		December 31,2014
2021 notes	$	350,000	$	350,000
2013 facility		55,000		30,000
Other long-term debt		3,868		3,904
		408,868		383,904
Less: current portion of long-term debt		55,078		30,074
Long-term debt, net of current maturities	$	353,790	$	353,830

2013 Facility Borrowings

As of June 30, 2015, we have $55.0 million in borrowings outstanding under our $175.0 million senior secured revolving credit facility (the “2013 facility”) at a weighted average interest rate of 2.0%. Amounts borrowed under our 2013 facility have been used to fund working capital needs and potential future acquisitions.

Fair Value

The only financial instrument which was measured at fair value on a recurring basis was our warrants. However, on April 14, 2015, the remaining 0.7 million of outstanding, detachable warrants were exercised. The warrants were considered to be derivative financial instruments and were classified as liabilities. As a result of this exercise, we recognized a non-cash, fair value adjustment of approximately $4.7 million during the three months ended June 30, 2015.  This fair value adjustment was recorded as interest expense in the accompanying condensed consolidated statement of operations and comprehensive income (loss).

The table below presents the effect of our derivative financial instrument on the condensed consolidated statements of operations and comprehensive income (loss) (in thousands):

DerivativeNot Designated asHedging Instrument		Amount of Gain (Loss) Recognizedin Income
	Location of Gain (Loss)	Three Months Ended June 30,					Six Months Ended June 30,
	Recognized in Income	2015			2014		2015			2014
Warrants	Interest expense, net	$	(4,730	)	$	1,178	$	(4,563	)	$	(19	)

We use the income approach to value our warrants by using the Black-Scholes option-pricing model. Using this model, the risk-free interest rate is based on the U.S. Treasury yield curve in effect on the valuation date. The expected life is based on the period of time until the expiration of the warrants. Expected volatility is based on the historical volatility of our common stock over the most recent period equal to the expected life of the warrants. The expected dividend yield is based on our history of not paying regular dividends in the past and our current intention to not pay regular dividends in the foreseeable future.

These techniques incorporate Level 1 and Level 2 inputs. Significant inputs to the derivative valuation for the warrants are observable in the active markets and are classified as Level 2 in the hierarchy.

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The following fair value hierarchy table presents information about our financial instrument measured at fair value on a recurring basis using significant other observable inputs (Level 2) (in thousands):

	Carrying ValueAs of June 30, 2015		Fair Value Measurement as of June 30, 2015		Carrying ValueAs of December 31, 2014		Fair Value Measurement as of December 31, 2014
Warrants (included in Other long-term liabilities)	$	—	$	—	$	3,375	$	3,375

We have elected to report the value of our 2021 Notes at amortized cost. The fair value of the 2021 Notes at June 30, 2015 was approximately $365.3 million and was determined using Level 2 inputs based on market prices.

4. Employee Stock-Based Compensation

Stock Option Grant

On February 11, 2015, our board of directors granted 142,000 stock options to employees under our 2014 Incentive Plan. All the awards vest at 25% per year at each anniversary of the grant date over four years. The exercise price for the options was $6.35 per share, which was the closing stock price on the grant date. The weighted average grant date fair value of the options was $4.20 and was determined using the Black-Scholes option-pricing model with the following weighted average assumptions:

Expected life	6.0 years
Expected volatility	75.2%
Expected dividend yield	0.00%
Risk-free rate	1.75%

The expected life represents the period of time the options are expected to be outstanding. We used the simplified method for determining the expected life assumption due to limited historical exercise experience on our stock options. The expected volatility is based on the historical volatility of our common stock over the most recent period equal to the expected life of the option. The expected dividend yield is based on our history of not paying regular dividends in the past and our current intention to not pay regular dividends in the foreseeable future. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant and has a term equal to the expected life of the options.

Restricted Stock Units Grant

On February 11, 2015, our board of directors granted 142,000 RSUs to employees under our 2014 Incentive Plan. All of the awards vest at 25% per year at each anniversary of the grant date over the next four years. The grant date fair value for the restricted stock units was $6.35 per share, which was the closing stock price on the grant date.

5. Income Taxes

We have $399.0 million of state operating loss carry-forwards, which includes $2.6 million of state tax credit carry-forwards expiring at various dates through 2032. We also have $256.6 million of federal net operating loss carry-forwards that will expire at various dates through 2033. To the extent we generate sufficient taxable income in the future to fully utilize the tax benefits of the net deferred tax assets on which a valuation allowance was recorded, our effective tax rate may decrease as the valuation allowance is reversed.

Utilization of deferred tax assets could be limited by Section 382 of the Internal Revenue Code which imposes annual limitations on the utilization of net operating loss (“NOL”) carryforwards, other tax carryforwards, and certain built-in losses upon an ownership change as defined under that section. In general terms, an ownership change may result from transactions that increase the aggregate ownership of certain stockholders in the Company’s stock by more than 50 percentage points over a three year testing period (“Section 382 Ownership Change”). If the Company were to experience a Section 382 Ownership Change, an annual limitation would be imposed on certain of the Company’s tax attributes, including NOL and capital loss carryforwards, and certain other losses, credits, deductions or tax basis.

We evaluate our deferred tax assets on a quarterly basis to determine whether a valuation allowance is required. In accordance with the Income Taxes topic of the Codification we assess whether it is more likely than not that some or all of our deferred tax assets will not be realized. Significant judgment is required in estimating valuation allowances for deferred tax assets. The realization of a deferred tax asset ultimately depends on the existence of sufficient taxable income in the applicable carryback or carryforward periods. We consider nature, frequency, and severity of current and cumulative losses, among other matters, the reversal of existing deferred tax liabilities, historical and forecasted taxable income, and tax planning strategies in our assessment. Changes in our

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estimates of future taxable income and tax planning strategies will affect our estimate of the realization of the tax benefits of these tax carryforwards.

Poor housing market conditions have contributed to our cumulative loss position for the past several years. While we generated income in 2014 and during the three months ended June 30, 2015, we reported a net loss for the six months ended June 30, 2015 and have a cumulative loss for the three year period ending June 30, 2015. We believe this, as well as uncertainty around the extent and timing of the continued housing market recovery, represents significant negative evidence in considering whether our deferred tax assets are realizable. Further, we do not believe that relying on projections of future taxable income to support the recovery of deferred tax assets is sufficient.  Based on an evaluation of positive and negative evidence, we concluded that the negative evidence regarding our ability to realize our deferred tax assets outweighed the positive evidence as of June 30, 2015.

We recorded a net reduction to the valuation allowance of $1.3 million for the three months ended June 30, 2015 against the net deferred tax assets as we generated net income during the period. We recorded an increase to the valuation allowance of $1.8 million for the six months ended June 30, 2015 against the net deferred tax assets generated from the net operating loss during the period related to our continuing operations. During the three and six months ended June 30, 2014, we recorded net reductions to the valuation allowance of $4.1 million and $3.0 million against our net deferred tax assets as we generated net income during these periods.

Without continued improvement in housing activity, we could be required to establish additional valuation allowances. However, we had positive earnings before taxes in 2014. To the extent we continue to generate sufficient taxable income in the same jurisdictions in the future to utilize the tax benefits of the related net deferred tax assets, we may reverse some or all of the valuation allowance. Excluding the impact of the acquisition of ProBuild Holdings LLC (“ProBuild”), we currently estimate that we will likely transition into a three year cumulative income position on a rolling three year period at some time during the year ending December 31, 2015. However, there continues to be uncertainty around housing market projections. There is also uncertainty as to the impact of the ProBuild acquisition to our earnings in the current year. Simply coming out of a cumulative loss is not viewed as a bright line and may not be considered sufficient positive evidence to reverse some or all of the valuation allowance if there are other offsetting negative factors. In upcoming quarters, we will closely monitor the positive and negative evidence surrounding our ability to realize our deferred tax assets.

We base our estimate of deferred tax assets and liabilities on current tax laws and rates. In certain cases, we also base our estimate on business plan forecasts and other expectations about future outcomes. Changes in existing tax laws or rates could affect our actual tax results, and future business results may affect the amount of our deferred tax liabilities or the valuation of our deferred tax assets over time. Due to uncertainties in the estimation process, particularly with respect to changes in facts and circumstances in future reporting periods, as well as the residential homebuilding industry’s cyclicality and sensitivity to changes in economic conditions, it is possible that actual results could differ from the estimates used in previous analyses.  

Accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on our consolidated results of operations or financial position.  

6. Commitments and Contingencies

We are a party to various legal proceedings in the ordinary course of business. Although the ultimate disposition of these proceedings cannot be predicted with certainty, management believes the outcome of any claim that is pending or threatened, either individually or on a combined basis, will not have a material adverse effect on our consolidated financial position, cash flows or results of operations. However, there can be no assurances that future costs related to legal proceedings would not be material to our results of operations or liquidity for a particular period.

7. Segment and Product Information

We offer an integrated solution to our customers providing manufacturing, supply, and installation of a full range of structural and related building products.  We provide a wide variety of building products and services directly to homebuilder customers. We manufacture floor trusses, roof trusses, wall panels, stairs, millwork, windows, and doors. We also provide a full range of construction services. These product and service offerings are distributed across approximately 450 locations operating in 40 states across the United States, which have been reorganized into nine geographical regions following the ProBuild acquisition.  Centralized financial and operational oversight, including resource allocation and assessment of performance on an income (loss) from continuing operations before income taxes basis, is performed by our CEO, whom we have determined to be our chief operating decision maker (“CODM”).

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As a result of the reorganization following the ProBuild acquisition on July 31, 2015, the Company has nine operating segments aligned with its nine geographical regions (Regions 1 through 9). While all of our operating segments have similar nature of products, distribution methods and customers, certain of our operating segments have been aggregated due to also containing similar economic characteristics, resulting in the following composition of reportable segments:

· Regions 1 and 2 have been aggregated to form the “Northeast” reportable segment

· Regions 3 and 5 have been aggregated to form the “Southeast” reportable segment  

· Regions 4 and 6 have been aggregated to form the “South” reportable segment

· Region 7, 8 and 9 have been aggregated to form the “West” reportable segment.  The West reportable segment operations were acquired in their entirety from the ProBuild acquisition.

In addition to our reportable segments, our consolidated results include corporate overhead, other various operating activities that are not internally allocated to a geographical region nor separately reported to the CODM, and certain reconciling items primarily related to allocations of corporate overhead and rent expense, which have collectively been presented as “All Other”.  The accounting policies of the segments are consistent with those described in Note 1, except for noted reconciling items.  

The following tables present Net sales, Income (loss) from continuing operations before income taxes and certain other measures for the reportable segments, reconciled to consolidated total continuing operations, for the periods indicated (in thousands):

	Three months ended June 30, 2015
Reportable segments	Net Sales		Depreciation & Amortization		Interest		Income (loss) from continuing operations before income taxes
Northeast	$	68,424	$	284	$	857	$	4,288
Southeast		193,525		800		3,255		5,061
South		169,231		1,641		3,779		2,604
West		—		—		—		—
Total reportable segments		431,180		2,725		7,891		11,953
All other		30,341		905		4,682		(8,586	)
Total consolidated	$	461,521	$	3,630	$	12,573	$	3,367

	Six months ended June 30, 2015
Reportable segments	Net Sales		Depreciation & Amortization		Interest		Income (loss) from continuing operations before income taxes
Northeast	$	111,909	$	527	$	1,709	$	3,637
Southeast		341,002		1,499		6,247		3,334
South		322,287		3,102		7,471		2,946
West		—		—		—		—
Total reportable segments		775,198		5,128		15,427		9,917
All other		57,309		1,654		4,753		(13,516	)
Total consolidated	$	832,507	$	6,782	$	20,180	$	(3,599	)

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	Three months ended June 30, 2014
Reportable segments	Net Sales		Depreciation & Amortization		Interest			Income (loss) from continuing operations before income taxes
Northeast	$	66,445	$	279	$	967		$	1,962
Southeast		184,247		701		3,109			3,499
South		144,766		426		3,205			2,482
West		—		—		—			—
Total reportable segments		395,458		1,406		7,281			7,943
All other		31,085		634		(777	)		2,907
Total consolidated	$	426,543	$	2,040	$	6,504		$	10,850

	Six months ended June 30, 2014
Reportable segments	Net Sales		Depreciation & Amortization		Interest		Income (loss) from continuing operations before income taxes
Northeast	$	115,843	$	563	$	1,864	$	1,121
Southeast		327,652		1,407		5,893		982
South		269,328		861		6,207		1,841
West		—		—		—		—
Total reportable segments		712,823		2,831		13,964		3,944
All other		59,629		1,191		1,368		3,512
Total consolidated	$	772,452	$	4,022	$	15,332	$	7,456

Asset information by segment is not reported internally or otherwise reviewed by the CODM nor does the company earn revenues or have long-lived assets located in foreign countries. The Company’s net sales by product category for the years indicated were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Lumber & lumber sheet goods	$	152,991	$	155,659	$	275,418	$	280,286
Windows, doors & millwork		145,073		127,998		266,670		235,495
Manufactured products		103,512		91,694		183,317		162,447
Gypsum, roofing & insulation		13,218		12,396		23,773		22,328
Siding, metal & concrete products		12,338		10,491		22,138		19,188
Other building products & services		34,389		28,305		61,191		52,708
Net sales	$	461,521	$	426,543	$	832,507	$	772,452

8. Acquisitions

On February 9, 2015, the Company acquired certain assets and the operations of Timber Tech Texas, Inc. and its affiliates (“Timber Tech”) for $5.8 million in cash (including certain adjustments). Of this amount, $4.5 million was allocated to tangible assets acquired and $1.3 million was allocated to goodwill. These are preliminary allocations and are subject to adjustment.

Timber Tech is based in Cibolo, Texas, which is approximately 25 miles northeast of downtown San Antonio. Timber Tech is a manufacturer of roof trusses, floor trusses, wall panels and sub-components, as well as a supplier of glue laminated timber and veneer lumber beams.

The acquisition was accounted for by the acquisition method, and accordingly the results of operations were included in the Company’s consolidated financial statements from the acquisition date. The purchase price was allocated to the assets acquired based on estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill. Pro forma results of operations are not presented as this acquisition is not material.

We incurred $0.0 million and $0.1 million in costs related to this acquisition during the three and six months ended June 30, 2015, respectively. These costs include due diligence costs and transaction costs to complete the acquisition, and have been

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recognized in selling, general and administrative expense in the accompanying condensed consolidated statements of operations and comprehensive income (loss) for the three months and six months ended June 30, 2015.

9. Recent Accounting Pronouncements

In July 2015, the FASB issued an update to the existing guidance under the Inventory topic of the Codification. This update changes the subsequent measurement of inventory from lower of cost or market to lower of cost and net realizable value. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption of this guidance is permitted as of the beginning of an interim or annual reporting period. This guidance requires prospective application. We are currently evaluating the impact of this guidance on our financial statements.

In April 2015, the FASB issued an update to the existing guidance under the Interest topic of the Codification. This update requires debt issuance costs to be presented on the balance sheet as a direct reduction from the carrying amount of the related debt liability instead of a deferred charge. This guidance is effective for interim and annual reporting periods beginning after December 15, 2015. This guidance requires retrospective application. Early adoption is permitted for financial statements that have not been previously issued. As of June 30, 2015 we had $8.3 million in debt issuance costs related to long-term debt which will be reclassified from other assets upon adoption of this standard.

In January 2015, the FASB issued an update to the existing guidance under the Income Statement topic of the Codification.  This update eliminates the concept of extraordinary items and the requirement to assess whether an event or transaction is both unusual in nature and infrequent in occurrence and to separately present any such items on the statement of operations after income from continuing operations. Under the updated guidance such items will either be presented as a separate component of income from continuing operations or disclosed in the notes to the financial statements. This guidance is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption, but not required. The guidance allows either prospective or retrospective methods of adoption. We do not currently expect that the adoption of this update will have an impact on our financial statements.

In August 2014, the FASB issued an update to the existing guidance under the Presentation of Financial Statements topicof the Codification. This update requires management to perform interim and annual assessments on whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year of the date the financial statements are issued and to provide related disclosures, if required. This new guidance is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted, but not required. We are currently evaluating the impact of this guidance on our financial statements.

In May 2014, the FASB issued an update to the existing guidance under the Revenue Recognition topic of the Codification which is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  This new guidance was originally effective for annual reporting periods beginning after December 15, 2016. However, in July 2015 the FASB approved an optional one year deferral of the effective date to annual reporting periods beginning after December 15, 2017.  As such, this guidance will be effective for us beginning on January 1, 2018. Early adoption is permitted; however, this guidance cannot be adopted earlier than the original effective date. This guidance allows either full retrospective or modified retrospective methods of adoption. We are currently evaluating the impact of this guidance on our financial statements.

10. Subsequent Event

ProBuild Acquisition

On July 31, 2015, we acquired all of the operating affiliates of ProBuild through the purchase of all issued and outstanding equity interests of ProBuild for $1.63 billion in cash, subject to certain adjustments. Headquartered in Denver, Colorado, ProBuild is one of the nation’s largest professional building materials suppliers. The ProBuild acquisition will lead to greater diversification and scale, an improved geographic footprint, and significant potential cost savings. In addition, we bring to ProBuild significant sales expertise in value-added products, which we believe, when combined with ProBuild’s attractive customer mix, will result in enhanced sales growth of higher margin products for the combined company.  

The purchase price was funded with the net cash proceeds from (i) the issuance of $700.0 million in aggregate principal amount of  10.75% senior unsecured notes due 2023, (ii) the entry into a new $600.0 million senior secured term loan facility, (iii) a $295.0 million draw on an amended and restated $800.0 million senior secured asset-backed loan facility and (iv) a public offering of 9.2 million new shares of our common stock at an offering price of $12.80 per share, subject, in each case, to applicable discounts, commissions, fees, and expenses.

This transaction will be accounted for by the acquisition method, and accordingly the results of operations will be included in the Company’s consolidated financial statements from the acquisition date. The purchase price will be allocated to the assets acquired based on estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets

11

acquired recorded as goodwill. The accounting for this acquisition has not been completed at the date of this filing given the proximity to the acquisition date.

We incurred $9.9 million and $15.2 million in acquisition and financing related costs for the three and six months ended June 30, 2015, respectively. Of these costs $6.3 million and $11.6 million were recognized as selling, general, and administrative expense in the accompanying condensed consolidated statement of operations and comprehensive income (loss) for the three and six months ended June 30, 2015. The remaining $3.6 million relates to debt and equity issuance costs and were recognized as other assets in the accompanying condensed consolidated balance sheet as of June 30, 2015. The debt issuance costs will be amortized over the respective terms of the various debt facilities. The equity issuance costs will be recorded as a reduction to additional paid-in capital in the third quarter of 2015.

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EX-99

Exhibit 99.2

Item  2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Note: The information contained in this Item has been updated for the change to reportable segments discussed in the Notes to the Consolidated Financial Statements filed in Exhibit 99.1 to this Current Report on Form 8-K. As such, the following discussion should be read in conjunction with our Current Report on Form 8-K filed November 19, 2015.

Except as expressly indicated or unless the context otherwise requires, the “Company,” “we,” “our” or “us” means Builders FirstSource, Inc. and its subsidiaries, including ProBuild Holdings LLC (“ProBuild”), as of July 31, 2015.

Cautionary Statement

Statements in this report which are not purely historical facts or which necessarily depend upon future events, including statements regarding our anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements in this report are based upon information available to us on the date of this report. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements made in this report involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. In addition, oral statements made by our directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. As with the forward-looking statements included in this report, these forward-looking statements are by nature inherently uncertain, and actual results may differ materially as a result of many factors. Further information regarding the risk factors that could affect our financial and other results are included as Item 1A of our annual report on Form 10-K.

COMPANY OVERVIEW

We are a leading supplier and manufacturer of structural and related building products for residential new construction in the U.S. We offer an integrated solution to our customers providing manufacturing, supply and installation of a full range of structural and related building products. Our manufactured products include our factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, as well as engineered wood that we design, cut, and assemble for each home. We also assemble interior and exterior doors into pre-hung units. Additionally, we supply our customers with a broad offering of professional grade building products not manufactured by us, such as dimensional lumber and lumber sheet goods, various window, door and millwork lines, as well as cabinets, roofing and hardware. Our full range of construction-related services includes professional installation, turn-key framing and shell construction, and spans all our product categories.

We group our building products into six product categories:

· Lumber & Lumber Sheet Goods. Lumber & lumber sheet goods include dimensional lumber, plywood, and OSB products used in on-site house framing.

· Windows, Door & Millwork. Windows & doors are comprised of the manufacturing, assembly, and distribution of windows and the assembly and distribution of interior and exterior door units. Millwork includes interior trim, exterior trim, columns and posts that we distribute, as well as custom exterior features that we manufacture under the Synboard^® brand name.  

· Manufactured Products. Manufactured products consist of wood floor and roof trusses, steel roof trusses, wall panels, stairs, and engineered wood.

· Gypsum, Roofing & Insulation. Gypsum, roofing, & insulation include wallboard, metal studs and trims, ceilings, joint treatment and finishes, stucco and exteriors.  

· Siding, metal, and concrete. Siding, metal, and concrete includes vinyl, composite, and wood siding, other exteriors, and cement.

· Other Building Products & Services. Other building products & services are comprised of products such as cabinets and hardware as well as services such as turn-key framing, shell construction, design assistance, and professional installation spanning the majority of our product categories.

Our operating results are dependent on the following trends, events and uncertainties, some of which are beyond our control:

· Homebuilding Industry. Our business is driven primarily by the residential new construction market, which is in turn dependent upon a number of factors, including demographic trends, interest rates, consumer confidence, employment rates, foreclosure rates, and the health of the economy and mortgage markets. During the housing downturn, which began in 2006, many homebuilders significantly decreased their housing starts because of lower demand and an excess of home inventory. The housing industry started to strengthen in 2011. According to the U.S. Census Bureau, the annualized rate for U.S. single-family housing starts was 685,000 as of June 30, 2015. However, single-family housing starts remain well below the historical average (from 1959 through 2014) of 1.0 million per year. Due to the lower levels of housing starts and increased competition for homebuilder business, we have and will continue to experience pressure on our gross margins. We still believe there are several meaningful trends that indicate U.S. housing demand will likely recover further in the long term and that the downturn in the housing industry was likely a trough in the cyclical nature of the residential construction industry. These trends include relatively low interest rates, the aging of housing stock, and normal population growth due to immigration and birthrate exceeding death rate. Industry forecasters, including the National Association of Homebuilders (the “NAHB”), expect to see continued improvement in housing demand over the next few years.

· Targeting Large Production Homebuilders. Over the past ten years, the homebuilding industry has undergone consolidation, and the larger homebuilders have increased their market share. We expect that trend to continue as larger homebuilders have better liquidity and land positions relative to the smaller, less capitalized homebuilders. Our focus is on maintaining relationships and market share with these customers while balancing the competitive pressures we are facing in servicing large homebuilders with certain profitability expectations. We expect that our ability to maintain strong relationships with the largest builders will be vital to our ability to expand into new markets as well as grow our market share. Additionally, we have been successful in expanding our custom homebuilder customer base while maintaining acceptable credit standards.

· Use of Prefabricated Components. Prior to the housing downturn, homebuilders were increasingly using prefabricated components in order to realize increased efficiency and improved quality. Shortening cycle time from start to completion was a key imperative of the homebuilders during periods of strong consumer demand. During the housing downturn, that trend decelerated as cycle time had less relevance. Customers who traditionally used prefabricated components, for the most part, still do. However, the conversion of customers to this product offering slowed during the downturn. We are now seeing the demand for prefabricated components increase as the residential new construction market continues to strengthen and the availability of skilled construction labor remains limited.  

· Economic Conditions. Economic changes both nationally and locally in our markets impact our financial performance. The building products supply industry is highly dependent upon new home construction and subject to cyclical market changes. Our operations are subject to fluctuations arising from changes in supply and demand, national and local economic conditions, labor costs, competition, government regulation, trade policies and other factors that affect the homebuilding industry such as demographic trends, interest rates, single-family housing starts, employment levels, consumer confidence, and the availability of credit to homebuilders, contractors, and homeowners. Beginning in 2007, the mortgage markets experienced substantial disruption due to increased defaults. This resulted in a stricter regulatory environment and reduced availability of mortgages for potential homebuyers due to an illiquid credit market and tighter standards to qualify for mortgages. Mortgage financing and commercial credit for smaller homebuilders continue to be constrained, although there have been recent signs of easing. As the housing industry is dependent upon the economy as well as potential homebuyers’ access to mortgage financing and homebuilders’ access to commercial credit, it is likely that the housing industry will not fully recover to the historical average until conditions in the economy and the credit markets further improve.

· Cost of Materials. Prices of wood products, which are subject to cyclical market fluctuations, may adversely impact operating income when prices rapidly rise or fall within a relatively short period of time. We purchase certain materials, including lumber products, which are then sold to customers as well as used as direct production inputs for our manufactured and prefabricated products. Short-term changes in the cost of these materials, some of which are subject to significant fluctuations, are sometimes passed on to our customers, but our pricing quotation periods may limit our ability to pass on such price changes. We may also be limited in our ability to pass on increases on in-bound freight costs on our products. Our inability to pass on material price increases to our customers could adversely impact our operating results.

· Controlling Expenses. Another important aspect of our strategy is controlling costs and enhancing our status as a low-cost building materials supplier in the markets we serve. We pay close attention to managing our working capital and operating expenses. We have a “best practices” operating philosophy, which encourages increasing efficiency, lowering costs, improving working capital, and maximizing profitability and cash flow. We constantly analyze our workforce productivity to achieve the optimum, cost-efficient labor mix for our facilities. Further, we pay careful attention to our logistics function and its effect on our shipping and handling costs.

· Multi-Family and Light Commercial Business. Our primary focus has been, and continues to be, on single-family residential new construction. However, we have recently acquired companies with multi-family manufacturing capabilities to further diversify our customer base.  We will continue to identify opportunities for profitable growth in the multi-family and light commercial markets. 

RECENT DEVELOPMENTS

Timber Tech Acquisition

On February 9, 2015 the Company acquired certain assets and the operations of Timber Tech Texas, Inc. and its affiliates (“Timber Tech”) for $5.8 million in cash (including certain adjustments). Timber Tech is based in Cibolo, Texas, which is approximately 25 miles northeast of downtown San Antonio. Timber Tech is a manufacturer of roof trusses, floor trusses, wall panels and sub-components, as well as a supplier of glue laminated timber and veneer lumber beams.    

This transaction was accounted for by the acquisition method, and accordingly the results of operations were included in the Company’s consolidated financial statements from the acquisition date. The purchase price has been allocated to the assets acquired based on estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill. The purchase price allocations are preliminary and are subject to adjustment.

ProBuild Acquisition

On July 31, 2015, we acquired all of the operating affiliates of ProBuild Holdings LLC (“ProBuild”) through the purchase of all issued and outstanding equity interests of ProBuild for $1.63 billion in cash, subject to certain adjustments. Headquartered in Denver, Colorado, ProBuild is one of the nation’s largest professional building materials suppliers. The ProBuild acquisition will lead to greater diversification and scale, an improved geographic footprint, and significant potential cost savings. In addition, we bring to ProBuild significant sales expertise in value-added products, which we believe, when combined with ProBuild’s attractive customer mix, will result in enhanced sales growth of higher margin products for the combined company.  

The purchase price was funded with the net cash proceeds from (i) the issuance of $700.0 million in aggregate principal amount of 10.75% senior unsecured notes due 2023, (ii) the entry into a new $600.0 million senior secured term loan facility, (iii) a $295.0 million draw on an amended and restated $800.0 million senior secured asset-backed loan facility, and (iv) a public offering of 9.2 million new shares of our common stock at an offering price of $12.80 per share, subject, in each case, to applicable discounts, commissions, fees, and expenses.

This transaction will be accounted for by the acquisition method, and accordingly the results of operations will be included in the Company’s consolidated financial statements from the acquisition date. The purchase price will be allocated to the assets acquired based on estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill. The accounting for this acquisition has not been completed at the date of this filing given the proximity to the acquisition date.

CURRENT OPERATING CONDITIONS AND OUTLOOK

Though the level of housing starts remains below the historical average, the homebuilding industry has shown improvement since 2011. For the second quarter of 2015, actual U.S. single-family housing starts were 205,300, a 12.4% increase compared to the second quarter of 2014. Actual single-family housing starts in the South Region, as defined by the U.S. Census Bureau and which encompasses our entire geographic footprint, were 106,900 in the second quarter of 2015, a 17.1% increase from the second quarter of 2014. Single-family units under construction in the South Region increased 6.8% during the second quarter of 2015 compared to the same quarter a year ago. While the housing industry has strengthened over the past few years, the limited availability of credit to smaller homebuilders and potential homebuyers and the slow economic recovery, among other factors, have hampered a stronger recovery. The NAHB forecasting 716,000 U.S. single-family housing starts for 2015, which is up approximately 10.8% from 2014, but still well below the historical average of 1.0 million single-family housing starts per year.

Our sales for the second quarter of 2015 were up 8.2% over the same period last year, 4.3% of which was due to recent acquisitions. Excluding the impact of recent acquisitions, we estimate sales increased 6.3% due to increased volume, which was partially offset by a 2.4% decrease due to the impact of commodity price deflation on sales. Our gross margin percentage increased by 2.0% during the second quarter of 2015 compared to the second quarter of 2014, primarily due to improved customer pricing relative to our costs and a higher mix of value-added sales. We made significant changes to our business during the downturn that have improved our operating efficiency and allowed us to better leverage our operating costs against changes in sales. However, our selling, general and administrative expenses, as a percentage of sales, were 20.5% in the second quarter of 2015, a 2.6% increase from 17.9% in the second quarter of 2014 primarily due to acquisition costs related to the recently announced ProBuild transaction, increased depreciation and amortization and an increase in stock compensation expense. Excluding these increases, our selling, general and

administrative expense was 18.6% of sales in the current quarter versus 17.9% of sales in the same quarter a year ago. This remaining increase was further affected by the negative impact of commodity price deflation on our sales.

We still believe that the long-term outlook for the housing industry is positive due to growth in the underlying demographics. We feel we are well-positioned to take advantage of the construction activity in our markets and to continue to increase our market share, which may include strategic acquisitions. We will continue to focus on working capital by closely monitoring the credit exposure of our customers and by working with our vendors to improve our payment terms and pricing on our products. We will also continue to work diligently to achieve the appropriate balance of short-term expense control while maintaining the expertise and capacity to grow the business as market conditions improve. We want to create long-term shareholder value and avoid taking steps that will limit our ability to compete.

SEASONALITY AND OTHER FACTORS

Our first and fourth quarters have historically been, and are generally expected to continue to be, adversely affected by weather causing reduced construction activity during these quarters. In addition, quarterly results historically have reflected, and are expected to continue to reflect, fluctuations from period to period arising from the following:

· The volatility of lumber prices;

· The cyclical nature of the homebuilding industry;

· General economic conditions in the markets in which we compete;

· The pricing policies of our competitors;

· The production schedules of our customers; and

· The effects of weather.

The composition and level of working capital typically change during periods of increasing sales as we carry more inventory and receivables. Working capital levels typically increase in the second and third quarters of the year due to higher sales during the peak residential construction season. These increases have in the past resulted in negative operating cash flows during this peak season, which historically have been financed through available cash and borrowing availability under credit facilities. Collection of receivables and reduction in inventory levels following the peak building and construction season have in the past positively impacted cash flow.

RESULTS OF OPERATIONS

The following table sets forth, for the three and six months ended June 30, 2015 and 2014, the percentage relationship to sales of certain costs, expenses and income items:

	Three Months EndedJune 30,						Six Months EndedJune 30,
	2015			2014			2015			2014
Sales		100.0	%		100.0	%		100.0	%		100.0	%
Cost of sales		76.0	%		78.0	%		76.7	%		78.2	%
Gross margin		24.0	%		22.0	%		23.3	%		21.8	%
Selling, general and administrative expenses		20.5	%		17.9	%		21.3	%		18.9	%
Facility closure costs		0.0	%		0.0	%		0.0	%		0.0	%
Income from operations		3.5	%		4.1	%		2.0	%		2.9	%
Interest expense, net		2.7	%		1.5	%		2.4	%		2.0	%
Income tax expense (benefit)		(0.0	)%		0.1	%		(0.0	)%		0.0	%
Income (loss) from continuing operations		0.8	%		2.5	%		(0.4	)%		0.9	%
Income (loss) from discontinued operations, net of tax		0.0	%		(0.0	)%		0.0	%		(0.0	)%
Net income (loss)		0.8	%		2.5	%		(0.4	)%		0.9	%

Three Months Ended June 30, 2015 Compared with the Three Months Ended June 30, 2014

Sales. Sales for the three months ended June 30, 2015 were $461.5 million, an 8.2% increase over sales of $426.5 million for the three months ended June 30, 2014. Sales increased 4.3% due to recent acquisitions for the three months ended June 30, 2015 compared to the same period one year ago. Excluding the impact of recent acquisitions, we estimate sales increased 6.3% due to increased volume, which was partially offset by a 2.4% decrease due to the impact of commodity price deflation on sales. According to the U.S. Census Bureau, actual U.S. single-family housing starts increased 12.4% in the second quarter of 2015 compared to the second quarter of 2014. In the South Region, which encompasses our entire geographic footprint, actual single-family housing starts increased 17.1% compared to the second quarter of 2014, and single-family units under construction increased 6.8% over this same time period.

The following table shows sales classified by product category (dollars in millions):

	Three Months Ended June 30,
	2015					2014
	Sales		% of Sales			Sales		% of Sales			% Change
Lumber & lumber sheet goods	$	153.0		33.1	%	$	155.7		36.5	%		-1.7	%
Windows, doors & millwork		145.1		31.4	%		128.0		30.0	%		13.4	%
Manufactured products		103.5		22.4	%		91.7		21.5	%		12.9	%
Gypsum, roofing & insulation		13.2		2.9	%		12.4		2.9	%		6.5	%
Siding, metal & concrete products		12.3		2.7	%		10.5		2.5	%		17.1	%
Other building products & services		34.4		7.5	%		28.2		6.6	%		22.0	%
Net sales	$	461.5		100.0	%	$	426.5		100.0	%		8.2	%

Increased sales were achieved across all product categories, except lumber and lumber sheet goods, primarily due to increased volume. The decrease in sales for lumber and lumber sheet goods is largely due to a 9.9% decrease in market prices for lumber and lumber sheet goods in the second quarter of 2015 compared to the second quarter of 2014, which was mostly offset by an increase in sales volume.

Gross Margin. Gross margin increased $16.8 million to $110.6 million. In addition, our gross margin percentage increased to 24.0% in the second quarter of 2015 from 22.0% in the second quarter of 2014, a 2.0% increase. Our gross margin percentage increased primarily due to improved customer pricing relative to our costs and a higher mix of value-added sales in the second quarter of 2015 compared to the second quarter of 2014.

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased $18.1 million, or 23.7%. Our salaries and benefits expense, excluding stock compensation expense, was $56.7 million, an increase of $8.5 million from the second quarter of 2014 primarily due to an 8.9% increase in full-time equivalent employees related to recent acquisitions and increased sales volume. Stock compensation expense increased $0.7 million due to recent stock option and restricted stock unit grants. Office general and administrative expense increased $7.1 million primarily due to acquisition costs related to the recently announced ProBuild transaction. Delivery expense increased $0.7 million largely due to increased sales volume. Occupancy expense increased $0.4 million due to recent acquisitions and expansions at existing facilities.

As a percentage of sales, selling, general and administrative expenses increased from 17.9% in the second quarter of 2014 to 20.5% in the second quarter of 2015. As a percentage of sales, salaries and benefits expense, excluding stock compensation expense, increased 1.0%, stock compensation expense increased 0.1%, office general and administrative expense increased 1.4%, occupancy costs were consistent with the second quarter of 2014, and delivery expenses decreased 0.1%. The increase in selling, general and administrative expenses, as a percentage of sales, was primarily due to the factors discussed above, and to a lesser degree, the negative impact of commodity price deflation on our sales.

Interest Expense, Net. Interest expense was $12.6 million in the second quarter of 2015, an increase of $6.1 million from the second quarter of 2014.The increase was primarily related to a $5.9 million increase in the non-cash, fair value adjustment related to the exercise of all our remaining stock warrants.  

Income Tax Expense. We recorded an income tax benefit of $0.2 million in the second quarter of 2015 compared to $0.2 million of income tax expense in the second quarter of 2014. We recorded a reduction in the after-tax, non-cash valuation allowance on our net deferred tax assets of $1.3 million and $4.1 million during the three months ended June 30, 2015 and 2014, respectively. Absent this valuation allowance, our effective tax rate would have been 33.2% and 39.5% in the second quarters of 2015 and 2014, respectively.

Six Months Ended June 30, 2015 Compared with the Six Months Ended June 30, 2014

Sales. Sales for the six months ended June 30, 2015 were $832.5 million, a 7.8% increase over sales of $772.5 million for the six months ended June 30, 2014. Sales increased 5.1% due to recent acquisitions for the six months ended June 30, 2015 compared to the same period one year ago. Excluding the impact of recent acquisitions, we estimate sales increased 4.0% due to increased volume, which was partially offset by a 1.3% decrease due to the impact of commodity price deflation on sales. According to the U.S. Census Bureau, actual U.S. single-family housing starts increased 9.1% in the first six months of 2015 compared to the first six months of 2014. In the South Region, which encompasses our entire geographic footprint, actual single-family housing starts increased 12.1% compared to the first six months of 2014, and single-family units under construction increased 6.4% over this same time period.

The following table shows sales classified by product category (dollars in millions):

	Six Months Ended June 30,
	2015					2014
	Sales		% of Sales			Sales		% of Sales			% Change
Lumber & lumber sheet goods	$	275.4		33.1	%	$	280.3		36.3	%		-1.7	%
Windows, doors & millwork		266.7		32.0	%		235.5		30.5	%		13.2	%
Manufactured products		183.3		22.0	%		162.5		21.0	%		12.8	%
Gypsum, roofing & insulation		23.8		2.9	%		22.3		2.9	%		6.7	%
Siding, metal & concrete products		22.1		2.7	%		19.2		2.5	%		15.1	%
Other building products & services		61.2		7.3	%		52.7		6.8	%		16.1	%
Net sales	$	832.5		100.0	%	$	772.5		100.0	%		7.8	%

Increased sales were achieved across all product categories, except lumber and lumber sheet goods, primarily due to increased volume. The decrease in sales for lumber and lumber sheet goods is primarily due to a 7.9% decrease in market prices for lumber and lumber sheet goods in the first six months of 2015 compared to the first six months of 2014, which was mostly offset by an increase in sales volume.

Gross Margin. Gross margin increased $25.6 million to $194.3 million. In addition, our gross margin percentage increased to 23.3% in the first six months of 2015 from 21.8% in the first six months of 2014, a 1.5% increase. Our gross margin percentage increased primarily due to improved customer pricing relative to our costs and a higher mix of value-added sales in the first six months of 2015 compared to the first six months of 2014.

Selling, General and Administrative Expenses.  Selling, general and administrative expenses increased $31.6 million, or 21.7%. Our salaries and benefits expense, excluding stock compensation expense, was $105.1 million, an increase of $13.4 million from the first six months of 2014 primarily due to a 6.7% increase in full-time equivalent employees related to recent acquisitions and increased sales volume. Stock compensation expense increased $1.5 million due to recent stock option and restricted stock unit grants. Office general and administrative expense increased $13.6 million primarily due to acquisition costs related to the recently announced ProBuild transaction.  Occupancy expense increased $1.0 million due to recent acquisitions and expansions at existing facilities. Delivery expense increased $0.9 million largely due to increased sales volume.

As a percentage of sales, selling, general and administrative expenses increased from 18.9% in the first six months of 2014 to 21.3% in the first six months of 2015. As a percentage of sales, salaries and benefits expense, excluding stock compensation expense, increased 0.7%, stock compensation expense increased 0.2%, office general and administrative expense increased 1.5%, occupancy costs were consistent with the first six months of 2014, and delivery expenses decreased 0.1%.  The increase in selling, general and administrative expenses, as a percentage of sales, was primarily due to the factors discussed above, and to a lesser degree, the negative impact of commodity price deflation on our sales.

Interest Expense, Net. Interest expense was $20.2 million in the first six months of 2015, an increase of $4.8 million from the first six months of 2014.The increase was primarily related to a $4.5 million increase in the non-cash, fair value adjustment related to the exercise of all our remaining stock warrants.  

Income Tax Expense. We recorded an income tax benefit of $0.0 million during the six months ended June 30, 2015 compared to income tax expense of $0.1 million during the six months ended June 30, 2014. We recorded an increase in the after-tax, non-cash valuation allowance on our net deferred tax assets of $1.8 million during the six months ended June 30, 2015 and a reduction of the after-tax, non-cash valuation allowance of $3.0 million during the six months ended June 30, 2014. Absent this valuation allowance, our effective tax rate would have been 50.5% and 42.4% for the six months ended June 30, 2015 and 2014, respectively.

Results by Reportable Segment

The following table shows net sales and income (loss) from continuing operations before income taxes by reportable segment (dollars in millions):

	Three month ended June 30,
	Net sales													Income (loss) from continuing operations before income taxes
	2015		% of net sales			2014		% of net sales			% change			2015		% of net sales			2014		% of net sales			% change
Northeast	$	68,424		15.9	%	$	66,445		16.8	%		3.0	%	$	4,288		1.0	%	$	1,962		0.5	%		118.6	%
Southeast		193,525		44.9	%		184,247		46.6	%		5.0	%		5,061		1.2	%		3,499		0.9	%		44.6	%
South		169,231		39.2	%		144,766		36.6	%		16.9	%		2,604		0.6	%		2,482		0.6	%		4.9	%
West		—		—			—		—			—			—		—			—		—			—
	$	431,180		100.0	%	$	395,458		100.0	%				$	11,953		2.8	%	$	7,943		2.0	%

	Six months ended June 30,
	Net sales													Income (loss) from continuing operations before income taxes
	2015		% of net sales			2014		% of net sales			% change			2015		% of net sales			2014		% of net sales			% change
Northeast	$	111,909		14.4	%	$	115,843		16.3	%		-3.4	%	$	3,637		0.5	%	$	1,121		0.2	%		224.4	%
Southeast		341,002		44.0	%		327,652		46.0	%		4.1	%		3,334		0.4	%		982		0.1	%		239.5	%
South		322,287		41.6	%		269,328		37.7	%		19.7	%		2,946		0.4	%		1,841		0.3	%		60.0	%
West		—		—			—		—			—			—		—			—		—			—
	$	775,198		100.0	%	$	712,823		100.0	%				$	9,917		1.3	%	$	3,944		0.6	%

As a result of our reorganization following the ProBuild acquisition on July 31, 2015, we now have four reportable segments based on an aggregation of the geographic regions in which we operate: the “Northeast” reportable segment, the “Southeast” reportable segment, the “South” reportable segment and the “West” reportable segment. The West reportable segment operations were acquired through the ProBuild acquisition.  Excluding the impact of recent acquisitions, net sales in the three months ended June 30, 2015 compared to the three months ended June 30, 2014 increased by 3.0%, 5.0% and 4.1% in our Northeast, Southeast and South reportable segments due to volume increases which outpaced the commodity price deflation offset.  The same factors, primarily volume increases offset by commodity price deflation, influenced the increase in net sales, excluding the impact of recent acquisitions in our Southeast and South reportable segments by 4.1% and 5.1%, respectively, in the six months ended June 30, 2015 compared to the six months ended June 30, 2014. Net sales for our Northeast reportable segment decreased 3.4% for the six months ended June 30, 2015 compared to the six months ended June 30, 2014 due to slower regional sales growth which was not enough to overcome the commodity price deflation impact.    

LIQUIDITY AND CAPITAL RESOURCES

Our primary capital requirements are to fund working capital needs and operating expenses, meet required interest and principal payments, and to fund capital expenditures and potential future acquisitions. Our capital resources at June 30, 2015 consist of cash on hand and borrowing availability under our revolving credit facility.

Our $175.0 million senior secured revolving credit facility (the “2013 facility”) has been primarily used for working capital, general corporate purposes, and funding acquisitions. Availability under the 2013 facility is determined by a borrowing base. Our borrowing base consists of trade accounts receivable, inventory and other receivables, including progress billings and credit card receivables, that meet specific criteria contained within the credit agreement, minus agent specified reserves. Net borrowing availability is equal to the maximum borrowing amount minus outstanding borrowings and letters of credit.

The following table shows our borrowing base and excess availability as of June 30, 2015 and December 31, 2014 (in millions):

	As of
	June 30,2015			December 31,2014
Accounts Receivable Availability	$	132.1		$	102.8
Inventory Availability		82.7			79.6
Other Receivables Availability		10.7			11.5
Gross Availability		225.5			193.9
Less:
Agent Reserves		(9.2	)		(8.0	)
Borrowing Base		216.3			185.9
Aggregate Revolving Commitments		175.0			175.0
Maximum Borrowing Amount (lesser of Borrowing Base and Aggregate Revolving Commitments)		175.0			175.0
Less:
Outstanding Borrowings		(55.0	)		(30.0	)
Letters of Credit		(16.4	)		(15.6	)
Net Borrowing Availability on Revolving Facility	$	103.6		$	129.4
Plus:
Cash in Qualified Accounts		39.2			16.7
Excess Availability, as defined	$	142.8		$	146.1

As of June 30, 2015, we had $55.0 million in outstanding borrowings under our 2013 facility and our net borrowing availability was $103.6 million after being reduced by outstanding letters of credit of approximately $16.4 million. Excess availability is the sum of our net borrowing availability plus qualified cash, defined as cash on deposit that is subject to a control agreement in favor of the agent. Excess availability must equal or exceed a minimum specified amount, currently $17.5 million, or we are required to meet a fixed charge coverage ratio of 1 to 1. At June 30, 2015, our excess availability was $142.8 million, including $103.6 million in net borrowing availability and $39.2 million in qualified cash. We were not in violation of any covenants or restrictions imposed by any of our debt agreements at June 30, 2015.

Liquidity

Our liquidity at June 30, 2015 was $143.8 million, which includes $103.6 million in net borrowing availability under the 2013 facility and $40.2 million of cash on hand. On July 31, 2015, we acquired ProBuild and all of its operating affiliates for $1.63 billion in cash, subject to certain adjustments.The purchase price was funded with the net cash proceeds from (i) the issuance of $700.0 million in aggregate principal amount of 2023 notes, (ii) the entry into a new $600.0 million term loan facility, (iii) a $295.0 million draw on the 2015 facility and, (iv) a public offering of 9.2 million new shares of our common stock at an offering price of $12.80 per share, subject, in each case, to applicable discounts, commissions, fees, and expenses. In addition,$350.0 million in aggregate principal amount of 7.625% senior secured notes due 2021 (“2021 notes”) remain outstanding. Our estimated liquidity upon closing the ProBuild acquisition was over $500.0 million consisting of cash on hand and borrowing availability under the 2015 facility.

We have substantially increased indebtedness following completion of the ProBuild acquisition in comparison to our indebtedness on a recent historical basis, which will increase our interest expense and could have the effect of, among other things, reducing our flexibility to respond to changing business and economic conditions. For more information regarding the effect of the ProBuild acquisition on our liquidity please refer to our Registration Statement on Form S-3 (Registration No. 333-203824) and the related prospectus supplement.

Should the current industry conditions deteriorate or we pursue additional acquisitions, we may be required to raise additional funds through the sale of common stock or debt in the public capital markets or in privately negotiated transactions. There can be no assurance that any of these financing options would be available on favorable terms, if at all. Alternatives to help supplement our liquidity position could include, but are not limited to, idling or permanently closing additional facilities, adjusting our headcount in response to current business conditions, attempts to renegotiate leases, and divesting of non-core businesses. There are no assurances that these steps would prove successful.

Consolidated Cash Flows

Cash provided by operating activities was $17.6 million and $0.7 million for the six months ended June 30, 2015 and 2014, respectively. Our working capital decreased $4.0 million in the first six months of 2015 compared to an increase of $13.3 million in the first six months of 2014. The remaining change is due to a $0.4 million decrease in cash provided by operations largely attributable to costs associated with the ProBuild transaction.

Cash used in investing activities was $19.9 million and $20.8 million for the six months ended June 30, 2015 and 2014, respectively. The change is primarily due to a $2.9 million decrease in cash used for acquisitions during the six months ended June 30, 2015 compared to the six months ended June 30, 2014. However, this decrease was mostly offset by a $2.2 million increase in capital expenditures over the same period. The increase in capital expenditures during the six months ended June 30, 2015 primarily relates to purchasing machinery, equipment and vehicles to support sales growth and to increase capacity at existing locations.

Cash provided by financing activities increased $24.8 million for the six months ended June 30, 2015 compared to the six months ended June 30, 2014. The change primarily related to our additional $25.0 million borrowing under our 2013 facility in the first quarter of 2015.

RECENT ACCOUNTING PRONOUNCEMENTS

In July 2015, the Financial Accounting Standards Board (‘FASB”) issued an update to the existing guidance under the Inventory topic of the Codification. This update changes the subsequent measurement of inventory from lower of cost or market to lower of cost and net realizable value. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption of this guidance is permitted as of the beginning of an interim or annual reporting period. This guidance requires prospective application. We are currently evaluating the impact of this guidance on our financial statements.

In April 2015, the FASB issued an update to the existing guidance under the Interest topic of the Accounting Standards Codification (“Codification”). This update requires debt issuance costs to be presented on the balance sheet as a direct reduction from the carrying amount of the related debt liability instead of a deferred charge. This guidance is effective for interim and annual reporting periods beginning after December 15, 2015. This guidance requires retrospective application. Early adoption is permitted for financial statements that have not been previously issued. As of June 30, 2015, we had $8.3 million in debt issuance costs related to long-term debt which will be reclassified from other assets upon adoption of this standard.

In January 2015, the FASB issued an update to the existing guidance under the Income Statement topic of the Codification.  This update eliminates the concept of extraordinary items and the requirement to assess whether an event or transaction is both unusual in nature and infrequent in occurrence and to separately present any such items on the statement of operations after income from continuing operations. Under the updated guidance such items will either be presented as a separate component of income from continuing operations or disclosed in the notes to the financial statements. This guidance is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption, but not required. The guidance allows either prospective or retrospective methods of adoption. We do not currently expect that the adoption of this update will have an impact on our financial statements.

In August 2014, the FASB issued an update to the existing guidance under the Presentation of Financial Statements topicof the Codification. This update requires management to perform interim and annual assessments on whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year of the date the financial statements are issued and to provide related disclosures, if required. This new guidance is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted, but not required. We are currently evaluating the impact of this guidance on our financial statements.

In May 2014, the FASB issued an update to the existing guidance under the Revenue Recognition topic of the Codification which is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  This new guidance was originally effective for annual reporting periods beginning after December 15, 2016. However, in July 2015, the FASB approved an optional one year deferral of the effective date to annual reporting periods beginning after December 15, 2017. As such, this guidance will be effective for us beginning on January 1, 2018. Early adoption is permitted; however, this guidance cannot be adopted earlier than the original effective date. This guidance allows either full retrospective or modified retrospective methods of adoption. We are currently evaluating the impact of this guidance on our financial statements.

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Segment and Product Information - Segment Reporting Information by Product Category (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Entity Wide Information Revenue From External Customer [Line Items]
Net Sales	$ 461,521	$ 426,543	$ 832,507	$ 772,452
Lumber And Lumber Sheet Goods
Entity Wide Information Revenue From External Customer [Line Items]
Net Sales	152,991	155,659	275,418	280,286
Windows, Doors And Millwork
Entity Wide Information Revenue From External Customer [Line Items]
Net Sales	145,073	127,998	266,670	235,495
Manufactured Products
Entity Wide Information Revenue From External Customer [Line Items]
Net Sales	103,512	91,694	183,317	162,447
Gypsum Roofing And Insulation
Entity Wide Information Revenue From External Customer [Line Items]
Net Sales	13,218	12,396	23,773	22,328
Siding, Metal And Concrete Products
Entity Wide Information Revenue From External Customer [Line Items]
Net Sales	12,338	10,491	22,138	19,188
Other Building Products And Services
Entity Wide Information Revenue From External Customer [Line Items]
Net Sales	$ 34,389	$ 28,305	$ 61,191	$ 52,708

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Debt - Additional Information (Detail) - USD ($) shares in Millions		3 Months Ended		6 Months Ended
	Apr. 14, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Debt Instrument [Line Items]
Exercise of detachable warrants	0.7
2021 notes | Level 2
Debt Instrument [Line Items]
Fair value of the notes		$ 365,300,000		$ 365,300,000
Warrant
Debt Instrument [Line Items]
Non cash fair value adjustment on detachable warrants exercise			$ 1,200,000		$ 0
Interest Expense | Warrant
Debt Instrument [Line Items]
Non cash fair value adjustment on detachable warrants exercise		(4,730,000)	$ 1,178,000	(4,563,000)	$ (19,000)
2013 facility
Debt Instrument [Line Items]
Line of credit facility outstanding		55,000,000		55,000,000
Line of credit facility maximum borrowing capacity		$ 175,000,000		$ 175,000,000
Weighted average interest rate of debt outstanding		2.00%		2.00%

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Debt

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Debt

3. Debt

Long-term debt consisted of the following (in thousands):

	June 30,2015		December 31,2014
2021 notes	$	350,000	$	350,000
2013 facility		55,000		30,000
Other long-term debt		3,868		3,904
		408,868		383,904
Less: current portion of long-term debt		55,078		30,074
Long-term debt, net of current maturities	$	353,790	$	353,830

2013 Facility Borrowings

As of June 30, 2015, we have $55.0 million in borrowings outstanding under our $175.0 million senior secured revolving credit facility (the “2013 facility”) at a weighted average interest rate of 2.0%. Amounts borrowed under our 2013 facility have been used to fund working capital needs and potential future acquisitions.

Fair Value

The only financial instrument which was measured at fair value on a recurring basis was our warrants. However, on April 14, 2015, the remaining 0.7 million of outstanding, detachable warrants were exercised. The warrants were considered to be derivative financial instruments and were classified as liabilities. As a result of this exercise, we recognized a non-cash, fair value adjustment of approximately $4.7 million during the three months ended June 30, 2015.  This fair value adjustment was recorded as interest expense in the accompanying condensed consolidated statement of operations and comprehensive income (loss).

The table below presents the effect of our derivative financial instrument on the condensed consolidated statements of operations and comprehensive income (loss) (in thousands):

DerivativeNot Designated asHedging Instrument		Amount of Gain (Loss) Recognizedin Income
	Location of Gain (Loss)	Three Months Ended June 30,					Six Months Ended June 30,
	Recognized in Income	2015			2014		2015			2014
Warrants	Interest expense, net	$	(4,730	)	$	1,178	$	(4,563	)	$	(19	)

We use the income approach to value our warrants by using the Black-Scholes option-pricing model. Using this model, the risk-free interest rate is based on the U.S. Treasury yield curve in effect on the valuation date. The expected life is based on the period of time until the expiration of the warrants. Expected volatility is based on the historical volatility of our common stock over the most recent period equal to the expected life of the warrants. The expected dividend yield is based on our history of not paying regular dividends in the past and our current intention to not pay regular dividends in the foreseeable future.

These techniques incorporate Level 1 and Level 2 inputs. Significant inputs to the derivative valuation for the warrants are observable in the active markets and are classified as Level 2 in the hierarchy.

The following fair value hierarchy table presents information about our financial instrument measured at fair value on a recurring basis using significant other observable inputs (Level 2) (in thousands):

	Carrying ValueAs of June 30, 2015		Fair Value Measurement as of June 30, 2015		Carrying ValueAs of December 31, 2014		Fair Value Measurement as of December 31, 2014
Warrants (included in Other long-term liabilities)	$	—	$	—	$	3,375	$	3,375

We have elected to report the value of our 2021 Notes at amortized cost. The fair value of the 2021 Notes at June 30, 2015 was approximately $365.3 million and was determined using Level 2 inputs based on market prices.

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Employee Stock-Based Compensation - Stock Option Valuation (Detail) - Stock Options	6 Months Ended
	Jun. 30, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected life	6 years
Expected volatility	75.20%
Expected dividend yield	0.00%
Risk-free rate	1.75%

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Employee Stock-Based Compensation - Additional Information (Detail)	Feb. 11, 2015 $ / shares shares
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock award vesting percentage	25.00%
Stock award granted vested period	4 years
Exercise Price for the options on the grant date	$ 6.35
Fair Value for the options on the grant date	$ 4.20
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock award vesting percentage	25.00%
Stock award granted vested period	4 years
Grant date fair value for restricted stock units	$ 6.35
2014 Incentive Plan | Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options, Granted | shares	142,000
2014 Incentive Plan | Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units, granted | shares	142,000

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Taxes [Line Items]
Ownership change percentage criteria under Section 382 of the Internal Revenue Code			50.00%
Testing period			3 years
Valuation allowance related to net deferred tax	$ (1.3)	$ (4.1)	$ 1.8	$ (3.0)
State
Income Taxes [Line Items]
State and Federal Operating loss carry-forwards	399.0		399.0
State Tax credit carry-forwards	2.6		$ 2.6
State and Federal Operating loss carry-forwards expiration year			2032
Federal
Income Taxes [Line Items]
State and Federal Operating loss carry-forwards	$ 256.6		$ 256.6
State and Federal Operating loss carry-forwards expiration year			2033

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Segment and Product Information - Additional Information (Detail)	Jul. 31, 2015 Segment	Jun. 30, 2015 Store States Region
Segment Reporting [Abstract]
Number of Locations | Store		450
Number of states		40
Number of geographic regions | Region		9
Number of operating segments | Segment	9

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Net Income (Loss) per Common Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Net Income (Loss) per Common Share

2. Net Income (Loss) per Common Share

Net income (loss) per common share (“EPS”) is calculated in accordance with the Earnings per Share topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“Codification”), which requires the presentation of basic and diluted EPS. Basic EPS is computed using the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential common shares.

Our restricted stock shares include rights to receive dividends that are not subject to the risk of forfeiture even if the underlying restricted stock shares on which the dividends were paid do not vest. In accordance with the Earnings per Share topic of the Codification, unvested share-based payment awards that contain non-forfeitable rights to dividends are deemed participating securities and should be considered in the calculation of basic EPS. Since the restricted stock shares do not include an obligation to share in losses, they will be included in our basic EPS calculation in periods of net income and excluded from our basic EPS calculation in periods of net loss. Accordingly, there were 13,000 restricted stock shares included in our calculation of basic EPS for the three months ended June 30, 2015, as we generated net income. There were 13,000 restricted stock shares excluded from our calculation of basic EPS for the six months ended June 30, 2015 because we generated a net loss. 68,000 restricted stock shares were included in the computation of basic EPS for the three and six months ended June 30, 2014 as we generated net income.

For the purpose of computing diluted EPS, weighted average shares outstanding have been adjusted for common shares underlying 6.2 million options and 1.5 million restricted stock units (“RSUs”) for the three months ended June 30, 2015. Incremental shares attributable to average warrants outstanding during the second quarter of 2015 were not included in the computation of diluted EPS for the three months ended June 30, 2015 as their effect was anti-dilutive. There were no outstanding warrants as of June 30, 2015 as all of the remaining stock warrants were exercised in April 2015. Options to purchase 6.2 million shares of common stock, 1.5 million RSUs, and the incremental shares attributable to average warrants outstanding during the first six months of 2015 were not included in the computation of diluted EPS for the six months ended June 30, 2015 because their effect was anti-dilutive.

Weighted average shares outstanding have been adjusted for common shares underlying 6.4 million options, 1.8 million RSUs, and 0.7 million warrants for the three and six months ended June 30, 2014. In addition, $1.2 million and $0.0 million of expense due to fair value adjustments related to the warrants were excluded from net income in the computation of diluted EPS for the three and six months ended June 30, 2014.

The table below presents a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS (in thousands):

	Three Months EndedJune 30,				Six Months EndedJune 30,
	2015		2014		2015		2014
Weighted average shares for basic EPS		99,163		98,032		98,677		97,963
Dilutive effect of options, warrants, and RSUs		3,815		2,727		—		2,803
Weighted average shares for diluted EPS		102,978		100,759		98,677		100,766

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Segment and Product Information - Schedule of Reconciling Information by Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Entity Wide Information Revenue From External Customer [Line Items]
Net Sales	$ 461,521	$ 426,543	$ 832,507	$ 772,452
Depreciation & Amortization	3,630	2,040	6,782	4,022
Interest	12,573	6,504	20,180	15,332
Income (loss) from continuing operations before income taxes	3,367	10,850	(3,599)	7,456
Operating Segments
Entity Wide Information Revenue From External Customer [Line Items]
Net Sales	431,180	395,458	775,198	712,823
Depreciation & Amortization	2,725	1,406	5,128	2,831
Interest	7,891	7,281	15,427	13,964
Income (loss) from continuing operations before income taxes	11,953	7,943	9,917	3,944
Operating Segments | Northeast
Entity Wide Information Revenue From External Customer [Line Items]
Net Sales	68,424	66,445	111,909	115,843
Depreciation & Amortization	284	279	527	563
Interest	857	967	1,709	1,864
Income (loss) from continuing operations before income taxes	4,288	1,962	3,637	1,121
Operating Segments | Southeast
Entity Wide Information Revenue From External Customer [Line Items]
Net Sales	193,525	184,247	341,002	327,652
Depreciation & Amortization	800	701	1,499	1,407
Interest	3,255	3,109	6,247	5,893
Income (loss) from continuing operations before income taxes	5,061	3,499	3,334	982
Operating Segments | South
Entity Wide Information Revenue From External Customer [Line Items]
Net Sales	169,231	144,766	322,287	269,328
Depreciation & Amortization	1,641	426	3,102	861
Interest	3,779	3,205	7,471	6,207
Income (loss) from continuing operations before income taxes	2,604	2,482	2,946	1,841
All other
Entity Wide Information Revenue From External Customer [Line Items]
Net Sales	30,341	31,085	57,309	59,629
Depreciation & Amortization	905	634	1,654	1,191
Interest	4,682	(777)	4,753	1,368
Income (loss) from continuing operations before income taxes	$ (8,586)	$ 2,907	$ (13,516)	$ 3,512

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Sales	$ 461,521	$ 426,543	$ 832,507	$ 772,452
Cost of sales	350,907	332,744	638,160	603,738
Gross margin	110,614	93,799	194,347	168,714
Selling, general and administrative expenses	94,543	76,417	177,381	145,735
Facility closure costs	131	28	385	191
Income from operations	15,940	17,354	16,581	22,788
Interest expense, net	12,573	6,504	20,180	15,332
Income (loss) from continuing operations before income taxes	3,367	10,850	(3,599)	7,456
Income tax expense (benefit)	(199)	230	(3)	148
Income (loss) from continuing operations	3,566	10,620	(3,596)	7,308
Income (loss) from discontinued operations (net of income tax expense of $0 in 2015 and $0 in 2014)	10	(11)	102	(83)
Net Income (loss)	3,576	10,609	(3,494)	7,225
Comprehensive Income (loss)	$ 3,576	$ 10,609	$ (3,494)	$ 7,225
Basic net income (loss) per share:
Income (loss) from continuing operations	$ 0.04	$ 0.11	$ (0.04)	$ 0.07
Income (loss) from discontinued operations	0.00	0.00	0.00	0.00
Net Income (loss)	0.04	0.11	(0.04)	0.07
Diluted net income (loss) per share:
Income (loss) from continuing operations	0.03	0.09	(0.04)	0.07
Income (loss) from discontinued operations	0.00	0.00	0.00	0.00
Net Income (loss)	$ 0.03	$ 0.09	$ (0.04)	$ 0.07
Weighted average common shares:
Basic	99,163	98,032	98,677	97,963
Diluted	102,978	100,759	98,677	100,766

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ (3,494)	$ 7,225
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	6,782	4,022
Amortization of deferred loan costs	1,232	1,200
Fair value adjustment of stock warrants	4,563	19
Deferred income taxes	28	80
Bad debt expense	161	(336)
Stock compensation expense	3,369	1,908
Net gain on sale of assets	(114)	(15)
Changes in assets and liabilities:
Receivables	(36,129)	(21,823)
Inventories	(6,976)	(15,438)
Other current assets	1,876	1,728
Other assets and liabilities	1,046	(114)
Accounts payable	34,670	19,663
Accrued liabilities	10,543	2,573
Net cash provided by operating activities	17,557	692
Cash flows from investing activities:
Purchases of property, plant and equipment	(14,331)	(12,121)
Proceeds from sale of property, plant and equipment	180	16
Cash used for acquisitions, net	(5,797)	(8,726)
Net cash used in investing activities	(19,948)	(20,831)
Cash flows from financing activities:
Borrowings under revolving credit facility	25,000
Payments of long-term debt and other loans	(36)	(33)
Deferred loan costs		(34)
Payments of transaction costs	(326)
Exercise of stock options	1,117	1,355
Repurchase of common stock	(986)	(1,306)
Net cash provided by (used in) financing activities	24,769	(18)
Net change in cash and cash equivalents	22,378	(20,157)
Cash and cash equivalents at beginning of period	17,773	54,696
Cash and cash equivalents at end of period	$ 40,151	$ 34,539

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Recent Accounting Pronouncements - Additional Information (Detail) $ in Millions	Jun. 30, 2015 USD ($)
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Debt issuance costs	$ 8.3

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Net Income (Loss) per Common Share - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Warrant
Earnings Per Share [Line Items]
Securities included in the computation of diluted EPS		700,000		700,000
Income expense due to fair value adjustments related to warrants excluded from the computations of EPS		$ 1.2		$ 0.0
Restricted Stock
Earnings Per Share [Line Items]
Securities included in the computation of basic EPS	13,000	68,000		68,000
Shares excluded from computation of EPS			13,000
Stock Options
Earnings Per Share [Line Items]
Shares excluded from computation of EPS			6,200,000
Securities included in the computation of diluted EPS	6,200,000	6,400,000		6,400,000
Restricted Stock Units (RSUs)
Earnings Per Share [Line Items]
Shares excluded from computation of EPS			1,500,000
Securities included in the computation of diluted EPS	1,500,000	1,800,000		1,800,000
Warrants outstanding	0		0

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Subsequent Event - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions		3 Months Ended	6 Months Ended
	Jul. 31, 2015	Jun. 30, 2015	Jun. 30, 2015
Subsequent Event [Line Items]
Acquisition and financing related costs		$ 9,900,000	$ 15,200,000
Debt and equity issuance costs		3,600,000	3,600,000
Selling, General and Administrative Expense
Subsequent Event [Line Items]
Acquisition and financing related costs		$ 6,300,000	$ 11,600,000
Subsequent Event
Subsequent Event [Line Items]
Common stock, new shares issued	9.2
Common stock, new price per share	$ 12.80
Subsequent Event | Senior Unsecured Notes Due 2023
Subsequent Event [Line Items]
Debt instrument face amount	$ 700,000,000
Debt instrument interest rate stated percentage	10.75%
Subsequent Event | Senior Secured First Lien Term Loan Facility
Subsequent Event [Line Items]
Debt instrument face amount	$ 600,000,000
Subsequent Event | Senior Secured Asset-Backed Loan Facility
Subsequent Event [Line Items]
Asset-backed loan facility	295,000,000
Line of credit facility maximum borrowing capacity	800,000,000
Subsequent Event | ProBuild Holdings LLC
Subsequent Event [Line Items]
Cash consideration for business acquisition	$ 1,630,000,000

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Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 408,868	$ 383,904
Current maturities of long-term debt	55,078	30,074
Long-term debt, net of current maturities	353,790	353,830
2021 notes
Debt Instrument [Line Items]
Long-term debt	350,000	350,000
2013 facility
Debt Instrument [Line Items]
Long-term debt	55,000	30,000
Other long-term debt
Debt Instrument [Line Items]
Long-term debt	$ 3,868	$ 3,904

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Basis of Presentation

6 Months Ended

Jun. 30, 2015

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

1.  Basis of Presentation

Builders FirstSource, Inc., a Delaware corporation formed in 1998, is a leading supplier and manufacturer of structural and related building products for residential new construction in the United States. In this quarterly report, references to the “Company,” “we,” “our,” “ours” or “us” refer to Builders FirstSource, Inc. and its consolidated subsidiaries, unless otherwise stated or the context otherwise requires.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all recurring adjustments and normal accruals necessary for a fair statement of the Company’s financial position, results of operations and cash flows for the dates and periods presented. Results for interim periods are not necessarily indicative of the results to be expected during the remainder of the current year or for any future period. All significant intercompany accounts and transactions have been eliminated in consolidation.

The condensed consolidated balance sheet as of December 31, 2014 is derived from the audited consolidated financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. This condensed consolidated balance sheet as of December 31, 2014 and the unaudited condensed consolidated financial statements included herein should be read in conjunction with the more detailed audited consolidated financial statements for the year ended December 31, 2014 included in our most recent annual report on Form 10-K. Accounting policies used in the preparation of these unaudited condensed consolidated financial statements are consistent with the accounting policies described in the Notes to Consolidated Financial Statements included in our Form 10-K.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Income tax expense on Income (loss) from discontinued operations	$ 0	$ 0

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Net Income (Loss) per Common Share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS

The table below presents a reconciliation of weighted average common shares used in the calculation of basic and diluted EPS (in thousands):

	Three Months EndedJune 30,				Six Months EndedJune 30,
	2015		2014		2015		2014
Weighted average shares for basic EPS		99,163		98,032		98,677		97,963
Dilutive effect of options, warrants, and RSUs		3,815		2,727		—		2,803
Weighted average shares for diluted EPS		102,978		100,759		98,677		100,766

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Document and Entity Information	6 Months Ended
	Jun. 30, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	Builders FirstSource, Inc.
Entity Central Index Key	0001316835
Document Type	8-K
Document Period End Date	Jun. 30, 2015
Amendment Flag	false

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Debt (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt consisted of the following (in thousands):

	June 30,2015		December 31,2014
2021 notes	$	350,000	$	350,000
2013 facility		55,000		30,000
Other long-term debt		3,868		3,904
		408,868		383,904
Less: current portion of long-term debt		55,078		30,074
Long-term debt, net of current maturities	$	353,790	$	353,830

Effect of Derivative Financial Instrument on Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

The table below presents the effect of our derivative financial instrument on the condensed consolidated statements of operations and comprehensive income (loss) (in thousands):

DerivativeNot Designated asHedging Instrument		Amount of Gain (Loss) Recognizedin Income
	Location of Gain (Loss)	Three Months Ended June 30,					Six Months Ended June 30,
	Recognized in Income	2015			2014		2015			2014
Warrants	Interest expense, net	$	(4,730	)	$	1,178	$	(4,563	)	$	(19	)

Fair Value Hierarchy Table on Recurring Basis (Level 2)

The following fair value hierarchy table presents information about our financial instrument measured at fair value on a recurring basis using significant other observable inputs (Level 2) (in thousands):

	Carrying ValueAs of June 30, 2015		Fair Value Measurement as of June 30, 2015		Carrying ValueAs of December 31, 2014		Fair Value Measurement as of December 31, 2014
Warrants (included in Other long-term liabilities)	$	—	$	—	$	3,375	$	3,375

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 40,151	$ 17,773
Accounts receivable, less allowance of $3,148 and $3,153 at June 30, 2015 and December 31, 2014, respectively	184,675	148,352
Inventories	146,227	138,156
Other current assets	26,752	27,259
Total current assets	397,805	331,540
Property, plant and equipment, net	86,830	75,679
Goodwill	141,090	139,774
Intangible assets, net	16,086	17,228
Other assets, net	20,561	18,844
Total assets	662,372	583,065
Current liabilities:
Accounts payable	110,538	75,868
Accrued liabilities	80,460	66,225
Current maturities of long-term debt	55,078	30,074
Total current liabilities	246,076	172,167
Long-term debt, net of current maturities	353,790	353,830
Other long-term liabilities	14,363	16,868
Total liabilities	$ 614,229	$ 542,865
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $0.01 par value, 10,000 shares authorized; zero shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively
Common stock, $0.01 par value, 200,000 shares authorized; 99,326 and 98,226 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively	$ 993	$ 982
Additional paid-in capital	391,517	380,091
Accumulated deficit	(344,367)	(340,873)
Total stockholders' equity	48,143	40,200
Total liabilities and stockholders' equity	$ 662,372	$ 583,065

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2015

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

6. Commitments and Contingencies

We are a party to various legal proceedings in the ordinary course of business. Although the ultimate disposition of these proceedings cannot be predicted with certainty, management believes the outcome of any claim that is pending or threatened, either individually or on a combined basis, will not have a material adverse effect on our consolidated financial position, cash flows or results of operations. However, there can be no assurances that future costs related to legal proceedings would not be material to our results of operations or liquidity for a particular period.

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Income Taxes

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

5. Income Taxes

We have $399.0 million of state operating loss carry-forwards, which includes $2.6 million of state tax credit carry-forwards expiring at various dates through 2032. We also have $256.6 million of federal net operating loss carry-forwards that will expire at various dates through 2033. To the extent we generate sufficient taxable income in the future to fully utilize the tax benefits of the net deferred tax assets on which a valuation allowance was recorded, our effective tax rate may decrease as the valuation allowance is reversed.

Utilization of deferred tax assets could be limited by Section 382 of the Internal Revenue Code which imposes annual limitations on the utilization of net operating loss (“NOL”) carryforwards, other tax carryforwards, and certain built-in losses upon an ownership change as defined under that section. In general terms, an ownership change may result from transactions that increase the aggregate ownership of certain stockholders in the Company’s stock by more than 50 percentage points over a three year testing period (“Section 382 Ownership Change”). If the Company were to experience a Section 382 Ownership Change, an annual limitation would be imposed on certain of the Company’s tax attributes, including NOL and capital loss carryforwards, and certain other losses, credits, deductions or tax basis.

We evaluate our deferred tax assets on a quarterly basis to determine whether a valuation allowance is required. In accordance with the Income Taxes topic of the Codification we assess whether it is more likely than not that some or all of our deferred tax assets will not be realized. Significant judgment is required in estimating valuation allowances for deferred tax assets. The realization of a deferred tax asset ultimately depends on the existence of sufficient taxable income in the applicable carryback or carryforward periods. We consider nature, frequency, and severity of current and cumulative losses, among other matters, the reversal of existing deferred tax liabilities, historical and forecasted taxable income, and tax planning strategies in our assessment. Changes in our estimates of future taxable income and tax planning strategies will affect our estimate of the realization of the tax benefits of these tax carryforwards.

Poor housing market conditions have contributed to our cumulative loss position for the past several years. While we generated income in 2014 and during the three months ended June 30, 2015, we reported a net loss for the six months ended June 30, 2015 and have a cumulative loss for the three year period ending June 30, 2015. We believe this, as well as uncertainty around the extent and timing of the continued housing market recovery, represents significant negative evidence in considering whether our deferred tax assets are realizable. Further, we do not believe that relying on projections of future taxable income to support the recovery of deferred tax assets is sufficient.  Based on an evaluation of positive and negative evidence, we concluded that the negative evidence regarding our ability to realize our deferred tax assets outweighed the positive evidence as of June 30, 2015.

We recorded a net reduction to the valuation allowance of $1.3 million for the three months ended June 30, 2015 against the net deferred tax assets as we generated net income during the period. We recorded an increase to the valuation allowance of $1.8 million for the six months ended June 30, 2015 against the net deferred tax assets generated from the net operating loss during the period related to our continuing operations. During the three and six months ended June 30, 2014, we recorded net reductions to the valuation allowance of $4.1 million and $3.0 million against our net deferred tax assets as we generated net income during these periods.

Without continued improvement in housing activity, we could be required to establish additional valuation allowances. However, we had positive earnings before taxes in 2014. To the extent we continue to generate sufficient taxable income in the same jurisdictions in the future to utilize the tax benefits of the related net deferred tax assets, we may reverse some or all of the valuation allowance. Excluding the impact of the acquisition of ProBuild Holdings LLC (“ProBuild”), we currently estimate that we will likely transition into a three year cumulative income position on a rolling three year period at some time during the year ending December 31, 2015. However, there continues to be uncertainty around housing market projections. There is also uncertainty as to the impact of the ProBuild acquisition to our earnings in the current year. Simply coming out of a cumulative loss is not viewed as a bright line and may not be considered sufficient positive evidence to reverse some or all of the valuation allowance if there are other offsetting negative factors. In upcoming quarters, we will closely monitor the positive and negative evidence surrounding our ability to realize our deferred tax assets.

We base our estimate of deferred tax assets and liabilities on current tax laws and rates. In certain cases, we also base our estimate on business plan forecasts and other expectations about future outcomes. Changes in existing tax laws or rates could affect our actual tax results, and future business results may affect the amount of our deferred tax liabilities or the valuation of our deferred tax assets over time. Due to uncertainties in the estimation process, particularly with respect to changes in facts and circumstances in future reporting periods, as well as the residential homebuilding industry’s cyclicality and sensitivity to changes in economic conditions, it is possible that actual results could differ from the estimates used in previous analyses.  

Accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on our consolidated results of operations or financial position.  

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Net Income (Loss) per Common Share - Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reconciliation of weighted average common shares used in calculation of basic and diluted EPS
Weighted average shares for basic EPS	99,163	98,032	98,677	97,963
Dilutive effect of options, warrants, and RSUs	3,815	2,727		2,803
Weighted average shares for diluted EPS	102,978	100,759	98,677	100,766

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Employee Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The weighted average grant date fair value of the options was $4.20 and was determined using the Black-Scholes option-pricing model with the following weighted average assumptions:

Expected life	6.0 years
Expected volatility	75.2%
Expected dividend yield	0.00%
Risk-free rate	1.75%

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2015

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Recent Accounting Pronouncements

9. Recent Accounting Pronouncements

In July 2015, the FASB issued an update to the existing guidance under the Inventory topic of the Codification. This update changes the subsequent measurement of inventory from lower of cost or market to lower of cost and net realizable value. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption of this guidance is permitted as of the beginning of an interim or annual reporting period. This guidance requires prospective application. We are currently evaluating the impact of this guidance on our financial statements.

In April 2015, the FASB issued an update to the existing guidance under the Interest topic of the Codification. This update requires debt issuance costs to be presented on the balance sheet as a direct reduction from the carrying amount of the related debt liability instead of a deferred charge. This guidance is effective for interim and annual reporting periods beginning after December 15, 2015. This guidance requires retrospective application. Early adoption is permitted for financial statements that have not been previously issued. As of June 30, 2015 we had $8.3 million in debt issuance costs related to long-term debt which will be reclassified from other assets upon adoption of this standard.

In January 2015, the FASB issued an update to the existing guidance under the Income Statement topic of the Codification.  This update eliminates the concept of extraordinary items and the requirement to assess whether an event or transaction is both unusual in nature and infrequent in occurrence and to separately present any such items on the statement of operations after income from continuing operations. Under the updated guidance such items will either be presented as a separate component of income from continuing operations or disclosed in the notes to the financial statements. This guidance is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption, but not required. The guidance allows either prospective or retrospective methods of adoption. We do not currently expect that the adoption of this update will have an impact on our financial statements.

In August 2014, the FASB issued an update to the existing guidance under the Presentation of Financial Statements topicof the Codification. This update requires management to perform interim and annual assessments on whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year of the date the financial statements are issued and to provide related disclosures, if required. This new guidance is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted, but not required. We are currently evaluating the impact of this guidance on our financial statements.

In May 2014, the FASB issued an update to the existing guidance under the Revenue Recognition topic of the Codification which is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  This new guidance was originally effective for annual reporting periods beginning after December 15, 2016. However, in July 2015 the FASB approved an optional one year deferral of the effective date to annual reporting periods beginning after December 15, 2017.  As such, this guidance will be effective for us beginning on January 1, 2018. Early adoption is permitted; however, this guidance cannot be adopted earlier than the original effective date. This guidance allows either full retrospective or modified retrospective methods of adoption. We are currently evaluating the impact of this guidance on our financial statements.

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Segment and Product Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment and Product Information

7. Segment and Product Information

We offer an integrated solution to our customers providing manufacturing, supply, and installation of a full range of structural and related building products.  We provide a wide variety of building products and services directly to homebuilder customers. We manufacture floor trusses, roof trusses, wall panels, stairs, millwork, windows, and doors. We also provide a full range of construction services. These product and service offerings are distributed across approximately 450 locations operating in 40 states across the United States, which have been reorganized into nine geographical regions following the ProBuild acquisition.  Centralized financial and operational oversight, including resource allocation and assessment of performance on an income (loss) from continuing operations before income taxes basis, is performed by our CEO, whom we have determined to be our chief operating decision maker (“CODM”).

As a result of the reorganization following the ProBuild acquisition on July 31, 2015, the Company has nine operating segments aligned with its nine geographical regions (Regions 1 through 9). While all of our operating segments have similar nature of products, distribution methods and customers, certain of our operating segments have been aggregated due to also containing similar economic characteristics, resulting in the following composition of reportable segments:

· Regions 1 and 2 have been aggregated to form the “Northeast” reportable segment

· Regions 3 and 5 have been aggregated to form the “Southeast” reportable segment  

· Regions 4 and 6 have been aggregated to form the “South” reportable segment

· Region 7, 8 and 9 have been aggregated to form the “West” reportable segment.  The West reportable segment operations were acquired in their entirety from the ProBuild acquisition.

In addition to our reportable segments, our consolidated results include corporate overhead, other various operating activities that are not internally allocated to a geographical region nor separately reported to the CODM, and certain reconciling items primarily related to allocations of corporate overhead and rent expense, which have collectively been presented as “All Other”.  The accounting policies of the segments are consistent with those described in Note 1, except for noted reconciling items.  

The following tables present Net sales, Income (loss) from continuing operations before income taxes and certain other measures for the reportable segments, reconciled to consolidated total continuing operations, for the periods indicated (in thousands):

	Three months ended June 30, 2015
Reportable segments	Net Sales		Depreciation & Amortization		Interest		Income (loss) from continuing operations before income taxes
Northeast	$	68,424	$	284	$	857	$	4,288
Southeast		193,525		800		3,255		5,061
South		169,231		1,641		3,779		2,604
West		—		—		—		—
Total reportable segments		431,180		2,725		7,891		11,953
All other		30,341		905		4,682		(8,586	)
Total consolidated	$	461,521	$	3,630	$	12,573	$	3,367

	Six months ended June 30, 2015
Reportable segments	Net Sales		Depreciation & Amortization		Interest		Income (loss) from continuing operations before income taxes
Northeast	$	111,909	$	527	$	1,709	$	3,637
Southeast		341,002		1,499		6,247		3,334
South		322,287		3,102		7,471		2,946
West		—		—		—		—
Total reportable segments		775,198		5,128		15,427		9,917
All other		57,309		1,654		4,753		(13,516	)
Total consolidated	$	832,507	$	6,782	$	20,180	$	(3,599	)

	Three months ended June 30, 2014
Reportable segments	Net Sales		Depreciation & Amortization		Interest			Income (loss) from continuing operations before income taxes
Northeast	$	66,445	$	279	$	967		$	1,962
Southeast		184,247		701		3,109			3,499
South		144,766		426		3,205			2,482
West		—		—		—			—
Total reportable segments		395,458		1,406		7,281			7,943
All other		31,085		634		(777	)		2,907
Total consolidated	$	426,543	$	2,040	$	6,504		$	10,850

	Six months ended June 30, 2014
Reportable segments	Net Sales		Depreciation & Amortization		Interest		Income (loss) from continuing operations before income taxes
Northeast	$	115,843	$	563	$	1,864	$	1,121
Southeast		327,652		1,407		5,893		982
South		269,328		861		6,207		1,841
West		—		—		—		—
Total reportable segments		712,823		2,831		13,964		3,944
All other		59,629		1,191		1,368		3,512
Total consolidated	$	772,452	$	4,022	$	15,332	$	7,456

Asset information by segment is not reported internally or otherwise reviewed by the CODM nor does the company earn revenues or have long-lived assets located in foreign countries. The Company’s net sales by product category for the years indicated were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Lumber & lumber sheet goods	$	152,991	$	155,659	$	275,418	$	280,286
Windows, doors & millwork		145,073		127,998		266,670		235,495
Manufactured products		103,512		91,694		183,317		162,447
Gypsum, roofing & insulation		13,218		12,396		23,773		22,328
Siding, metal & concrete products		12,338		10,491		22,138		19,188
Other building products & services		34,389		28,305		61,191		52,708
Net sales	$	461,521	$	426,543	$	832,507	$	772,452

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Acquisitions

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Acquisitions

8. Acquisitions

On February 9, 2015, the Company acquired certain assets and the operations of Timber Tech Texas, Inc. and its affiliates (“Timber Tech”) for $5.8 million in cash (including certain adjustments). Of this amount, $4.5 million was allocated to tangible assets acquired and $1.3 million was allocated to goodwill. These are preliminary allocations and are subject to adjustment.

Timber Tech is based in Cibolo, Texas, which is approximately 25 miles northeast of downtown San Antonio. Timber Tech is a manufacturer of roof trusses, floor trusses, wall panels and sub-components, as well as a supplier of glue laminated timber and veneer lumber beams.

The acquisition was accounted for by the acquisition method, and accordingly the results of operations were included in the Company’s consolidated financial statements from the acquisition date. The purchase price was allocated to the assets acquired based on estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill. Pro forma results of operations are not presented as this acquisition is not material.

We incurred $0.0 million and $0.1 million in costs related to this acquisition during the three and six months ended June 30, 2015, respectively. These costs include due diligence costs and transaction costs to complete the acquisition, and have been recognized in selling, general and administrative expense in the accompanying condensed consolidated statements of operations and comprehensive income (loss) for the three months and six months ended June 30, 2015.

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Subsequent Event

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Event

10. Subsequent Event

ProBuild Acquisition

On July 31, 2015, we acquired all of the operating affiliates of ProBuild through the purchase of all issued and outstanding equity interests of ProBuild for $1.63 billion in cash, subject to certain adjustments. Headquartered in Denver, Colorado, ProBuild is one of the nation’s largest professional building materials suppliers. The ProBuild acquisition will lead to greater diversification and scale, an improved geographic footprint, and significant potential cost savings. In addition, we bring to ProBuild significant sales expertise in value-added products, which we believe, when combined with ProBuild’s attractive customer mix, will result in enhanced sales growth of higher margin products for the combined company.  

The purchase price was funded with the net cash proceeds from (i) the issuance of $700.0 million in aggregate principal amount of  10.75% senior unsecured notes due 2023, (ii) the entry into a new $600.0 million senior secured term loan facility, (iii) a $295.0 million draw on an amended and restated $800.0 million senior secured asset-backed loan facility and (iv) a public offering of 9.2 million new shares of our common stock at an offering price of $12.80 per share, subject, in each case, to applicable discounts, commissions, fees, and expenses.

This transaction will be accounted for by the acquisition method, and accordingly the results of operations will be included in the Company’s consolidated financial statements from the acquisition date. The purchase price will be allocated to the assets acquired based on estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill. The accounting for this acquisition has not been completed at the date of this filing given the proximity to the acquisition date.

We incurred $9.9 million and $15.2 million in acquisition and financing related costs for the three and six months ended June 30, 2015, respectively. Of these costs $6.3 million and $11.6 million were recognized as selling, general, and administrative expense in the accompanying condensed consolidated statement of operations and comprehensive income (loss) for the three and six months ended June 30, 2015. The remaining $3.6 million relates to debt and equity issuance costs and were recognized as other assets in the accompanying condensed consolidated balance sheet as of June 30, 2015. The debt issuance costs will be amortized over the respective terms of the various debt facilities. The equity issuance costs will be recorded as a reduction to additional paid-in capital in the third quarter of 2015.

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Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Feb. 09, 2015	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Business combination goodwill acquired		$ 141,090	$ 141,090	$ 139,774
Selling, General and Administrative Expense
Business Acquisition [Line Items]
Acquisition related costs		6,300	$ 11,600
Timber Tech Texas, Inc. and its affiliates
Business Acquisition [Line Items]
Date of acquisition			Feb. 09, 2015
Cash consideration for certain assets acquired	$ 5,800
Business combination tangible assets acquired	4,500
Business combination goodwill acquired	$ 1,300
Timber Tech Texas, Inc. and its affiliates | Selling, General and Administrative Expense
Business Acquisition [Line Items]
Acquisition related costs		$ 0	$ 100

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Basis of Presentation - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Entity formed, year	1998

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Debt - Effect of Derivative Financial Instrument on Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Detail) - Warrant - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative Instruments Gain Loss [Line Items]
Non cash fair value adjustment on detachable warrants exercise		$ 1,200		$ 0
Interest Expense
Derivative Instruments Gain Loss [Line Items]
Non cash fair value adjustment on detachable warrants exercise	$ (4,730)	$ 1,178	$ (4,563)	$ (19)

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Allowances on trade accounts receivable	$ 3,148	$ 3,153
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	99,326,000	98,226,000
Common stock, shares outstanding	99,326,000	98,226,000

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Employee Stock-Based Compensation

6 Months Ended

Jun. 30, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Employee Stock-Based Compensation

4. Employee Stock-Based Compensation

Stock Option Grant

On February 11, 2015, our board of directors granted 142,000 stock options to employees under our 2014 Incentive Plan. All the awards vest at 25% per year at each anniversary of the grant date over four years. The exercise price for the options was $6.35 per share, which was the closing stock price on the grant date. The weighted average grant date fair value of the options was $4.20 and was determined using the Black-Scholes option-pricing model with the following weighted average assumptions:

Expected life	6.0 years
Expected volatility	75.2%
Expected dividend yield	0.00%
Risk-free rate	1.75%

The expected life represents the period of time the options are expected to be outstanding. We used the simplified method for determining the expected life assumption due to limited historical exercise experience on our stock options. The expected volatility is based on the historical volatility of our common stock over the most recent period equal to the expected life of the option. The expected dividend yield is based on our history of not paying regular dividends in the past and our current intention to not pay regular dividends in the foreseeable future. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant and has a term equal to the expected life of the options.

Restricted Stock Units Grant

On February 11, 2015, our board of directors granted 142,000 RSUs to employees under our 2014 Incentive Plan. All of the awards vest at 25% per year at each anniversary of the grant date over the next four years. The grant date fair value for the restricted stock units was $6.35 per share, which was the closing stock price on the grant date.

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Debt - Fair Value Hierarchy Table on Recurring Basis (Level 2) (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Other long-term liabilities	$ 14,363	$ 16,868
Carrying Value | Warrant | Fair Value Measurements Recurring
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Other long-term liabilities		3,375
Fair Value Measurement | Warrant | Level 2 | Fair Value Measurements Recurring
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Other long-term liabilities		$ 3,375

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Segment and Product Information (Tables)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Schedule of Reconciling Information by Reportable Segments

The following tables present Net sales, Income (loss) from continuing operations before income taxes and certain other measures for the reportable segments, reconciled to consolidated total continuing operations, for the periods indicated (in thousands):

	Three months ended June 30, 2015
Reportable segments	Net Sales		Depreciation & Amortization		Interest		Income (loss) from continuing operations before income taxes
Northeast	$	68,424	$	284	$	857	$	4,288
Southeast		193,525		800		3,255		5,061
South		169,231		1,641		3,779		2,604
West		—		—		—		—
Total reportable segments		431,180		2,725		7,891		11,953
All other		30,341		905		4,682		(8,586	)
Total consolidated	$	461,521	$	3,630	$	12,573	$	3,367

	Six months ended June 30, 2015
Reportable segments	Net Sales		Depreciation & Amortization		Interest		Income (loss) from continuing operations before income taxes
Northeast	$	111,909	$	527	$	1,709	$	3,637
Southeast		341,002		1,499		6,247		3,334
South		322,287		3,102		7,471		2,946
West		—		—		—		—
Total reportable segments		775,198		5,128		15,427		9,917
All other		57,309		1,654		4,753		(13,516	)
Total consolidated	$	832,507	$	6,782	$	20,180	$	(3,599	)

	Three months ended June 30, 2014
Reportable segments	Net Sales		Depreciation & Amortization		Interest			Income (loss) from continuing operations before income taxes
Northeast	$	66,445	$	279	$	967		$	1,962
Southeast		184,247		701		3,109			3,499
South		144,766		426		3,205			2,482
West		—		—		—			—
Total reportable segments		395,458		1,406		7,281			7,943
All other		31,085		634		(777	)		2,907
Total consolidated	$	426,543	$	2,040	$	6,504		$	10,850

	Six months ended June 30, 2014
Reportable segments	Net Sales		Depreciation & Amortization		Interest		Income (loss) from continuing operations before income taxes
Northeast	$	115,843	$	563	$	1,864	$	1,121
Southeast		327,652		1,407		5,893		982
South		269,328		861		6,207		1,841
West		—		—		—		—
Total reportable segments		712,823		2,831		13,964		3,944
All other		59,629		1,191		1,368		3,512
Total consolidated	$	772,452	$	4,022	$	15,332	$	7,456

Schedule of Segment Reporting Information by Product Category

The Company’s net sales by product category for the years indicated were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Lumber & lumber sheet goods	$	152,991	$	155,659	$	275,418	$	280,286
Windows, doors & millwork		145,073		127,998		266,670		235,495
Manufactured products		103,512		91,694		183,317		162,447
Gypsum, roofing & insulation		13,218		12,396		23,773		22,328
Siding, metal & concrete products		12,338		10,491		22,138		19,188
Other building products & services		34,389		28,305		61,191		52,708
Net sales	$	461,521	$	426,543	$	832,507	$	772,452